Just before the decisive shareholder vote on Elon Musk's multi-billion dollar compensation package, the pension fund ERSRI has sued the Tesla CEO for insider trading.
The lawsuit, filed on Tuesday, demands that Musk repay billions in "illegal profits" allegedly made by exploiting insider information. This development was reported by Kurier.
According to the lawsuit filed in Delaware Chancery Court, Musk and his brother Kimbal, a Tesla director, sold $30 billion worth of Tesla shares between late 2021 and late 2022.
The sales occurred before news emerged that caused Tesla's stock price to drop.
The lawsuit claims Musk concealed his plan to use the proceeds to buy the social media platform Twitter, thereby selling Tesla shares at artificially inflated prices.
Additionally, Musk allegedly sold shares despite knowing that deliveries of new vehicles were falling short of official projections.
Ongoing Investigations
Musk is also under regulatory investigation for potentially violating U.S. securities laws when he purchased Twitter shares in 2022.
This investigation is separate from the insider trading allegations brought by the pension fund ERSRI, which holds about 140,000 Tesla shares, valued at around $24 million as of Tuesday's closing price of $170.66 per share.
On Thursday, Tesla shareholders will convene for their annual general meeting. One of the key items on the agenda is the $56 billion compensation package awarded to Musk in 2018, which a court recently overturned.
