Tesla’s CEO and world’s richest man, Elon Musk once again found himself in legal crossfire as he was sued by Twitter investors on May 26 for manipulating its stock price.
Musk has been in the middle of a contentious $44 billion takeover bid for the social media platform since April. According to this new lawsuit, he intentionally delayed disclosing his stake in the company and tweeted false statements about the buyout in order to give himself room to negotiate.
The reason behind Musk’s alleged price manipulation is attributed to the fact that many tech stocks, including Tesla’s, took a sharp dive soon after the Twitter deal was announced. The lawsuit alleged that Musk tried to secure a discount by casting doubt on his commitment and disparaging the company.
Twitter reportedly lost $8 billion in market valuation since the buyout was announced and Musk allegedly saved himself $156 million in the process.
Musk is no stranger to litigation, especially as the CEO of Tesla Inc. The company has been party to a large number of lawsuits and many of these involve claims of misconduct against the company’s top executives.
That’s why it opts for an important business insurance policy called Directors and Officers Insurance. This policy helps companies cover all legal expenses, lawyer fees, and monetary settlements that arise out of lawsuits involving the company’s top management.
But with Musk’s rather active presence on social media that regularly materialises into controversial statements, many have speculated if Musk is in fact “effectively uninsurable”. Well, even if he is, his $219 billion personal wealth can easily come to his rescue.
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