Two investors filed suit against Tesla CEO Elon Musk and the electric auto company after he tweeted he wanted to take the firm private, causing the share price to inflate and short-selling investors to lose millions.
After the tweet, Tesla's stock rose enough for Musk's net worth to grow by $1.4 billion (according to Hypebeast).
It said this occurred largely through a series of tweets by Musk on August 7, including when he said he might take Tesla private and that there was "funding secured".
Two new lawsuits accuse Tesla and its CEO Elon Musk of violating federal securities law by allegedly making false statements to boost the company's stock price.
Elon Musk - the founder, CEO, and lead designer at SpaceX, and the co-founder of Tesla - speaks at the International Space Station Research and Development Conference in Washington, US, July 19, 2017. The company is based in nearby Palo Alto, California.
All The Goals As Bielsa's Leeds Hammer Lampard's Derby
From the opening exchanges, it was clear that this game was always going to one that had goals in it. First, Roofe slammed the ball high past Carson to register his second.
Late Friday Musk mocked short investors in a series of tweets, suggesting his antipathy toward them hasn't dimmed. That would allow the shorts to buy back the stock at a lower price, return the shares to the lender, and pocket the difference.
No evidence has been presented by either side to prove or disprove that funding had been secured to take the company private. But in the days since, it has lost most of those gains, reacting, at least in part, to reports from Bloomberg and the Wall Street Journal that the federal Securities and Exchange Commission is investigating Musk's claim.
According to the complaint, Isaacs bought 3,000 Tesla shares on August 8 to cover his short position, or bet that the price would decline, in the company.
But he added that the conduct of Tesla and its chief executive Mr Musk had caused volatility and cost short-sellers hundreds of millions of dollars.
The cases are Isaacs v Musk et al, U.S. District Court, Northern District of California, No. 18-04865; and Chamberlain v Tesla Inc et al in the same court, No. 18-04876.