Tesla Inc
The proposed class-action complaint filed by Kalman Isaacs in San Francisco federal court accused Tesla and Musk of trying to artificially manipulate the company`s stock price.
It said this occurred largely through a series of tweets by Musk on Aug. 7, including when he said he might take Tesla private and that there was "funding secured."
TRENDING NOW
Musk`s tweets helped push Tesla`s stock price more than 13 percent above the previous day`s close.
The stock has since retreated, in part following reports that the U.S. Securities and Exchange Commission had begun inquiring about Musk`s activity.
Tesla did not respond to a request for comment.
Isaacs accused Musk of making false and misleading statements to inflate Tesla`s stock price, and that Tesla "doubled-down" on those statements by failing to correct them.
According to the complaint, Isaacs bought 3,000 Tesla shares on Aug. 8 to cover his short position, or bet that the price would decline, in the company.
The complaint said the class period begins on the afternoon of Aug. 7, when the defendants launched their "nuclear attack" on short-sellers, and ends the next day.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
05:00 am
Mcap of four of top 10 most-valued firms rises by Rs 65,671 crore
India's space economy set to reach USD 40 billion by 2040: Union Minister Jitendra Singh 
Germany's economy shrank, and it's facing a spending crisis that's spreading more gloom 
Japan's economy contracts as recession risks grow
China's 2023 growth target within reach - China bank governor