Close
Date TimeAugust 10, 2018
VoiceLawsuits say ‘funding secured’ tweet broke securities laws and aimed to punish short-sellers
Elon Musk and Tesla sued over fraudulent scheme to go private
Tesla and Elon Musk were sued twice on Friday by investors who say they fraudulently engineered a scheme to squeeze short-sellers, including through Musk’s proposal to take the electric car company private.
The lawsuits were filed three days after Musk stunned investors by announcing on Twitter that he might take Tesla private in a record $72bn transaction that valued the company at $420 per share, and that “funding” had been “secured”.
In one of the lawsuits, the plaintiff Kalman Isaacs said Musk’s tweets were false and misleading, and together with Tesla’s failure to correct them amounted to a “nuclear attack” designed to “completely decimate” short-sellers.
The lawsuits filed by Isaacs and William Chamberlain said Musk’s and Tesla’s conduct artificially inflated Tesla’s stock price and violated federal securities laws.
Short-sellers borrow shares they believe are overpriced, sell them, and then repurchase shares later at what they hope will be a lower price to make a profit.
Such investors have long been an irritant for Musk, who has sometimes used Twitter to criticize them.
Musk’s tweets on 7 August helped push Tesla’s stock price more than 13% above the prior day’s close.
The stock has since given back more than two-thirds of that gain, in part following reports that the US Securities and Exchange Commission had begun inquiring about Musk’s activity.
Musk has not offered evidence that he has lined up the necessary funding to take Tesla private, and the complaints did not offer proof to the contrary.
But Isaacs said Tesla’s and Musk’s conduct caused the volatility that cost short-sellers hundreds of millions of dollars from having to cover their short positions, and caused all Tesla securities purchasers to pay inflated prices.
Tesla’s market value exceeds $60bn and its shares closed on Friday up $3.04 at $355.49.
According to his complaint, Isaacs bought 3,000 Tesla shares on 8 August to cover his short position.

Related Stories
PewDiePie features Elon Musk and Rick and Morty’s Justin Roiland on Meme Review and fans can’t handle itPewDiePie features Elon Musk and Rick and Morty’s Justin Roiland on Meme Review and fans can’t handle it
Tesla begins Model 3 delivery in China ahead of scheduleTesla begins Model 3 delivery in China ahead of schedule
Tesla Model 3 = #1 Best Selling Electric Car in World, 7% of Global EV Market in 2018Tesla Model 3 = #1 Best Selling Electric Car in World, 7% of Global EV Market in 2018
$500,000 Will Get You Ticket To Mars, Hopes Elon Musk$500,000 Will Get You Ticket To Mars, Hopes Elon Musk
Elon Musk switched up his legal team and hired the lawyer who went after Enron to defend him against the SECElon Musk switched up his legal team and hired the lawyer who went after Enron to defend him against the SEC
Tesla announces long-promised $35,000 Model 3Tesla announces long-promised $35,000 Model 3
Teslas Elon Musk may be in contempt over tweetTesla's Elon Musk may be in contempt over tweet
Johnny Depp says ex Amber Heard had affair with Elon MuskJohnny Depp says ex Amber Heard had affair with Elon Musk
Tesla stock tanks after Elon Musk unveils cheaper Model 3Tesla stock tanks after Elon Musk unveils cheaper Model 3
Historic Israeli Mission to the Moon Underway Following SpaceX LaunchHistoric Israeli Mission to the Moon Underway Following SpaceX Launch
News Trends
Vandals strike again: Downtown statue of Queen Victoria doused in green paintVandals strike again: Downtown statue of Queen Victoria doused in green paint
Government could ignore indicative Brexit votes, says Liam FoxGovernment could ignore indicative Brexit votes, says Liam Fox
Scott Walker, experimental pop hero, dies aged 76Scott Walker, experimental pop hero, dies aged 76
Mel B Claims She Slept With Geri Halliwell During Spice Girls EraMel B Claims She Slept With Geri Halliwell During Spice Girls Era
‘Shazam!’ Film Review: DC Comics Gets a Bouncy Burst of Big-Screen Ebullience‘Shazam!’ Film Review: DC Comics Gets a Bouncy Burst of Big-Screen Ebullience
Sydney Aiello, a survivor of the Parkland school shooting, dies by suicideSydney Aiello, a survivor of the Parkland school shooting, dies by suicide
Larry Cohen, Writer-Director of Its Alive and Hell Up in Harlem, Dies at 77Larry Cohen, Writer-Director of 'It's Alive' and 'Hell Up in Harlem,' Dies at 77
Kylie Jenner Doubles Down On Being A Self Made BillionaireKylie Jenner Doubles Down On Being A "Self Made" Billionaire
Robert Mueller report will be a gold mine of improprieties. Trump shouldnt celebrate yetRobert Mueller report will be a gold mine of improprieties. Trump shouldn't celebrate yet
Brexit stitch up: Revoke Article 50 petition hits 4 million – could pass 5 million TONIGHTBrexit stitch up: Revoke Article 50 petition hits 4 million – could pass 5 million TONIGHT
Leaders
Donald-TrumpDonald Trump
45th President of the United States of America
Mike-PenceMike Pence
Vice President of the United States
Theresa-MayTheresa May
British Prime Minister
Angela-MerkelAngela Merkel
Chancellor of Germany
Emmanuel-MacronEmmanuel Macron
President of France
Justin-TrudeauJustin Trudeau
Prime Minister of Canada
Nancy-PelosiNancy Pelosi
Speaker of the United States House of Representatives
Barack-ObamaBarack Obama
44th U.S. President
Vladimir-PutinVladimir Putin
Russian President
Shinzo-AbeShinzō Abe
Prime Minister of Japan
Related Stories
PewDiePie features Elon Musk and Rick and Morty’s Justin Roiland on Meme Review and fans can’t handle itPewDiePie features Elon Musk and Rick and Morty’s Justin Roiland on Meme Review and fans can’t handle it
Tesla begins Model 3 delivery in China ahead of scheduleTesla begins Model 3 delivery in China ahead of schedule
Tesla Model 3 = #1 Best Selling Electric Car in World, 7% of Global EV Market in 2018Tesla Model 3 = #1 Best Selling Electric Car in World, 7% of Global EV Market in 2018
$500,000 Will Get You Ticket To Mars, Hopes Elon Musk$500,000 Will Get You Ticket To Mars, Hopes Elon Musk
Elon Musk switched up his legal team and hired the lawyer who went after Enron to defend him against the SECElon Musk switched up his legal team and hired the lawyer who went after Enron to defend him against the SEC
Tesla announces long-promised $35,000 Model 3Tesla announces long-promised $35,000 Model 3
Teslas Elon Musk may be in contempt over tweetTesla's Elon Musk may be in contempt over tweet
Johnny Depp says ex Amber Heard had affair with Elon MuskJohnny Depp says ex Amber Heard had affair with Elon Musk
Tesla stock tanks after Elon Musk unveils cheaper Model 3Tesla stock tanks after Elon Musk unveils cheaper Model 3
Historic Israeli Mission to the Moon Underway Following SpaceX LaunchHistoric Israeli Mission to the Moon Underway Following SpaceX Launch
News Trends
Vandals strike again: Downtown statue of Queen Victoria doused in green paintVandals strike again: Downtown statue of Queen Victoria doused in green paint
Government could ignore indicative Brexit votes, says Liam FoxGovernment could ignore indicative Brexit votes, says Liam Fox
Scott Walker, experimental pop hero, dies aged 76Scott Walker, experimental pop hero, dies aged 76
Mel B Claims She Slept With Geri Halliwell During Spice Girls EraMel B Claims She Slept With Geri Halliwell During Spice Girls Era
‘Shazam!’ Film Review: DC Comics Gets a Bouncy Burst of Big-Screen Ebullience‘Shazam!’ Film Review: DC Comics Gets a Bouncy Burst of Big-Screen Ebullience
Sydney Aiello, a survivor of the Parkland school shooting, dies by suicideSydney Aiello, a survivor of the Parkland school shooting, dies by suicide
Larry Cohen, Writer-Director of Its Alive and Hell Up in Harlem, Dies at 77Larry Cohen, Writer-Director of 'It's Alive' and 'Hell Up in Harlem,' Dies at 77
Kylie Jenner Doubles Down On Being A Self Made BillionaireKylie Jenner Doubles Down On Being A "Self Made" Billionaire
Robert Mueller report will be a gold mine of improprieties. Trump shouldnt celebrate yetRobert Mueller report will be a gold mine of improprieties. Trump shouldn't celebrate yet
Brexit stitch up: Revoke Article 50 petition hits 4 million – could pass 5 million TONIGHTBrexit stitch up: Revoke Article 50 petition hits 4 million – could pass 5 million TONIGHT
Leaders
Donald-TrumpDonald Trump
45th President of the United States of America
Mike-PenceMike Pence
Vice President of the United States
Theresa-MayTheresa May
British Prime Minister
Angela-MerkelAngela Merkel
Chancellor of Germany
Emmanuel-MacronEmmanuel Macron
President of France
Justin-TrudeauJustin Trudeau
Prime Minister of Canada
Nancy-PelosiNancy Pelosi
Speaker of the United States House of Representatives
Barack-ObamaBarack Obama
44th U.S. President
Vladimir-PutinVladimir Putin
Russian President
Shinzo-AbeShinzō Abe
Prime Minister of Japan
House of Fraser dodges administration as Mike Ashley seals £90m deal
MacBook Air 2018 release - everything Apple needs to upgrade to please laptop fans
Dele Alli gets Tottenham off to a winning start against Newcastle
'Our women are FREE!' Lebanon mayor hires policewomen in HOT PANTS to boost tourism
NASA delays launch of probe to 'touch the sun'
F-15 fighter planes give chase after twin-propellor Q400 barges on to runway at Seattle-Tacoma airport and takes off
'RHONY' star Bethenny Frankel's ex-boyfriend Dennis Shields found dead in Trump Tower
Nicki Minaj ruthlessly blasts Drake, DJ Khaled, Meek Mill and more in 'Barbie Dreams' lyrics
All the Crazy Details from Kylie Jenner’s 21st Birthday Party
Tour de France champion Jan Ullrich arrested on suspicion of assaulting a prostitute in Frankfurt 
Omarosa says Trump is a racist who uses N-word – and claims there's tape to prove it
Ivanka Trump shows off thrifty side wearing striking dress she first debuted last year
Amal Clooney: George Clooney's connection to Princess Eugenie REVEALED ahead of wedding
When Does Nicki Minaj's New Album Drop? The 'Queen' Release Date Is Sooner Than You Think
Trump Hits Turkey When It's Down, Doubling Tariffs
Ryanair cancels 400 flights as pilots strike
Fredericton shooting: Four dead including two police in Canada
Samsung launches Fortnite for Android exclusive
Andrew Luck makes return as Colts beat Seahawks 19-17
Prescott throws for TD before 49ers rally past Cowboys 24-21
James Bond: Idris Elba to replace Daniel Craig? OVERTAKES bookies' favourites as odds cut
Fortnite's 'Season 5' Snobby Shores Treasure Map: Where To Find The Treasure
The sexy style Meghan Markle has abandoned since marrying Prince Harry
France holiday HORROR: Helicopters rescue 750 campers from FLASH FLOODS - one missing
Parker Solar Probe cleared for Saturday launch to 'touch the sun'
Kylie Jenner Shares New Photos of 'Most Special Gift' Stormi's Face in Honor of 21st Birthday
Justin Bieber Explains Why He Was Crying Next to Hailey Baldwin
Kanye West Jokes He Worried About Kim Kardashian Around Trump: 'He's a Player'
Tesla's board may reportedly tell Elon Musk to recuse himself from talks about taking the company private
Michael Avenatti Says He’s In Iowa To Explore A Run For President
Judge Threatens Sessions With Contempt Over Deported Asylum Seekers
Everton sign Barcelona’s Yerry Mina and Andre Gomes plus Shakhtar’s Bernard
Laura Ingraham's 'demographic changes' monologue is a rallying cry to Trump's base
Mike Pence launches plans for Space Force as new military service
Nasa's daring mission to 'touch the sun' explained
From Rihanna's eyebrows to slip dresses: should we embrace the 90s revival?
Interest rates will stay low for 20 years – Bank of England expert
Samsung set to unveil next flagship Note smartphone
Emilia Clarke boyfriend: Is the Game of Thrones star single? Who has she dated?
Cristiano Ronaldo: Juventus star’s girlfriend Georgina Rodriguez nearly spills out of top
Egypt's second sphinx FOUND: Ancient statue discovered during ROAD WORKS
You know aging in Hollywood is rough when Leonardo DiCaprio and Brad Pitt get Photoshopped
Weird, 570-Million-Year-Old 'Leaf' Fossil Is Actually from an Animal
Melania Trump's parents are now US citizens
Assange 'considering' testifying in Russia meddling probe
Lombok earthquake: new quake hits as death toll from earlier tremor tops 300
Police warn Drake fans against doing 'Shiggy' dance on road
Chelsea announce agreement to sign Mateo Kovacic on season-long loan
Carrie Underwood is pregnant, tells fans she is 'over the moon'
Professional golfer Jarrod Lyle dies at age 36 after battling leukemia
Tweet threatens to ‘waste’ everyone at town hall event for Devin Nunes’ opponent
Prince William and Theresa May join ex-soldiers to celebrate Battle of Amiens which signalled beginning of end of WW1
Argentina holds historic abortion vote as 1m women rally to demand change
US confirms Russia DID order Salisbury nerve agent attack and promise REVENGE sanctions
Gaining control of Portugal wildfire will take days, prime minister says
Brad Pitt says he loaned $8 million to Angelina Jolie, paid $1.3 million in child support
NASA's newest spacecraft will fly through the Sun's scorching hot atmosphere
Chelsea sets $91m record for goalkeeper
'Dear Ivanka': Celebrities target Trump's daughter on Instagram
Indonesian earthquake: Death toll rises to 347 after powerful jolt to resort island
Oscars: Academy to add achievement in popular film category
CW Network Casts Ruby Rose as Lesbian Batwoman
From Kong to Kirby: Smash Bros' Masahiro Sakurai on mashing up 35 years of gaming history
GOP Rep. Chris Collins charged with insider trading
Tlaib wins Conyers' seat; Congress to get 1st Muslim woman
Kim, Khloé shade Younes Bendjima after breakup with Kourtney
Key takeaways from Ohio special election and primaries in four other states
Kansas GOP governor primary too close to call; Kobach, Colyer send supporters home
Jarvis Landry delivers epic speech in season premiere of HBO's 'Hard Knocks' with Browns
Manchester United turn down Barcelona offer for Paul Pogba
International Cat Day: 15 facts about moggies
Indian political icon Muthuvel Karunanidhi dies at 94
Dina Asher-Smith and Zharnel Hughes storm to 100m Euro gold
Blackhawks legend, Hockey Hall of Famer Stan Mikita dies at 78
Theresa May calls on Boris Johnson to say sorry for burqa remarks
Elon Musk Might Take Tesla Private in a Move That Values the Company at $82 Billion
'Bachelorette' Becca Kufrin Explains Why Arie Luyendyk Jr. Was Cut From Finale (Exclusive)
Shaun Weiss: 5 Things To Know About 'The Mighty Ducks' Star, 39, Who Was Arrested
Wilbur Ross alleged to have siphoned more than $120 million from associates, Forbes reports
Kathleen Turner discusses Trump's 'gross' handshake, Elizabeth Taylor's 'awful' voice in tell-all interview
Chelsea to pay £71.6m for Athletic Bilbao goalkeeper Kepa Arrizabalaga
Ruby Rose cast as The CW's Batwoman
Ohio special election, Different point of view
Google honours Muslim philosopher Ibn Sina
Margot Robbie's scary good Sharon Tate transformation for 'Once Upon a Time in Hollywood'
Britney Spears will keep her fans dancing 'til the world ends - Brighton Pride review
Man City transfer news LIVE Pep Guardiola's hunt for midfielder and latest on Joe Hart's Burnley transfer
Trabuco Canyon brush fire: Fast-moving blaze burns 4000 acres, prompts evacuations
Don’t you dare let Paul Pogba leave, Rio Ferdinand tells United
Diamondbacks OF David Peralta's shoulder injury not a major concern
Later this year, a SpaceX Falcon 9 rocket will launch its biggest batch of satellites yet
Director of Trayvon Martin documentary says teen’s shooting was ‘turning point’ for U.S
Bachelorette Becca Kufrin picks her man and Bachelor Nation does not approve
Sweep of Yankees shows Red Sox can do 'damage,' too
Hothouse Earth: Runaway global warming threatens 'habitability of the planet for humans'
Stan Kroenke makes £600m offer to buy ‘100% ownership’ of Arsenal
Robert Redford confirms retirement from acting
Bernard to have Everton medical with club set to win battle for Brazil winger
Facebook, Apple, YouTube and Spotify ban Infowars' Alex Jones
Paul Manafort's 'right-hand man' Rick Gates to testify in fraud trial
Actress Charlotte Rae dies
Beyoncé reveals she is 'descended from a slaveowner'
Indonesia earthquake: Lombok hit by SECOND earthquake today - Bali rattled
SpaceX set to re-fly first Falcon 9 Block 5 booster Tuesday
Facebook to Banks: Give Us Your Data, We'll Give You Our Users
NFL's first male dancers will hit the sidelines this season
Trump re-imposes Iran sanctions 'to change, not topple Tehran'
Bologna EXPLOSION: Massive fireball rockets into sky near Italy airport – shock footage
Tiger Woods moves on to PGA Championship as Justin Thomas wins Bridgestone by four shots
Liz Peek: Obama stiffs Ocasio-Cortez as Democrats weigh whether she hurts or helps them in November
Hiroshima marks 73rd anniversary of atomic bombing in World War II
Apple removes podcasts by Infowars' Alex Jones
Man charged with murder of midwife Samantha Eastwood
France LOSES OUT on Brexit billions: Belgian and Dutch ports picked for new Irish route
Police chief orders use of force review after Portland protest
Saudis expel Canadian envoy, freeze new trade deals over tweets about rights activist
14 hours in Chicago: 44 shot, 5 killed
At least 317 killed in ongoing protests in Nicaragua
Hundreds crowd beach, await rescue after massive quake in Indonesia
Theresa May confident of reaching Brexit deal, sources say
Sublime Manchester City sweep Chelsea aside to lift Community Shield
Lady Gaga apologizes for calling Rick 'Zombie Boy' Genest's death a suicide
Hall wins Women's British Open for 1st major title
Kellyanne Conway: 'I don't believe journalists are the enemy of the people'
Patrick Stewart stuns fans with 'Star Trek' return
Radio telescope picks up new frequency in space
Old-time plane crashes in Swiss Alps, killing 20 on board
6.9-magnitude quake hits Indonesia
'The Americans' Wins Big at TV Critics Awards
Entertainer Barry Chuckle dies at 73
A flat tire started the deadly Carr Fire and days of devastation in California
UFC 227: TJ Dillashaw reveals strategy for second Garbrandt KO, declares himself BW GOAT
Randy Moss wears tie during Hall of Fame speech as tribute to slain African-Americans
Emilia Clarke: Game Of Thrones star flashes the flesh as she gives fans insight into break
Man Utd boss Jose Mourinho plots £80m deadline-busting raid for Harry Maguire
Trump may want a ‘Space Force’ but the Pentagon has a different idea
Venezuela's Maduro: Drone attack was attempt to kill him
Convicted child rapist escapes from Kansas prison three days after arrival
Melania Trump contradicts her husband on LeBron James
Meghan Markle dazzles in navy as she arrives for wedding of Prince Harry's close friend
18 killed after Russian helicopter crashes in Siberia, airline says
Urban Meyer says he knew about and reported 2015 incident of alleged abuse by assistant
Astronomers discover a free-range planet with incredible magnetism
Facebook Dating will be a feature, not an app; here's a peek
Barack Obama Day: Former president's political home state of Illinois kicks off holiday
Mission Possible: How To Hike Pulpit Rock Like Tom Cruise Onscreen
Cristiano Ronaldo: Juventus star thought Real Madrid exit was humiliating for one reason
Weekend Box Office: 'Mission: Impossible 6' Making More Honey Than 'Christopher Robin'
Europe's record temperature of 48C could be beaten this weekend
First woman fined in Denmark for wearing full-face veil
President Trump bashes LeBron James over CNN interview: Don Lemon made him 'look smart'
Melania Trump shows of incredible figure in tight white jeans with husband Donald
'Zombie Boy' Rick Genest, tattooed muse to Lady Gaga, dies aged 32
More than 100 goats invade Boise neighbourhood, chew on everything they could find
May and Macron hold 'informal' Brexit talks in France
These 9 Astronauts Will Fly the 1st Flights on SpaceX and Boeing Spaceships
Judge Denies Larry Nassar’s Appeal For New Sentence
Ella Mai: ‘If it were up to England, Boo’d Up definitely wouldn’t be where it is now’
Travis Scott will drop new album this week
Barcelona complete signing of Arturo Vidal for £27m from Bayern Munich
My son, Osama: the al-Qaida leader’s mother speaks for the first time
Donald Trump hits back at criticism: 'DISGUSTING! I was EARLY and waiting for the QUEEN!'
Boeing and SpaceX delay first crucial test flights of new passenger spacecraft again
Colbert Mocks Paul Manafort’s Wardrobe: Looks Like ‘A Blind Pimp Got 100 Wishes’
Black pastors see Trump bringing 'new hope' -- but still need to convince their flocks
395 people sickened in McDonald's salad outbreak
Suspected Russian spy caught working inside US embassy in Moscow
Urban Meyer placed on leave as Ohio State investigates what he knew about alleged abuse
Virat Kohli’s brilliant century frustrates England in India fightback
Trump received letter from North Korea's Kim on August 1: White House
Ivanka Trump: Migrant separations a ‘low point’ and journalists are not ‘enemy of the people’
May prepares for talks with Macron that could make or break Brexit plan
Stonehenge mystery SOLVED: Who built Stonehenge? Latest study on stone formation REVEALED
Naomi Campbell, 48, stuns in two bikini photos, shuts down pregnancy rumors
Iran deploys 50 small boats to Strait of Hormuz for large-scale 'swarming' exercise
Thousands march in Jerusalem Gay Pride amid surrogacy uproar
Elon Musk Shares Image of Reusable Falcon 9 Blazing a Trail in the Night
Kim Kardashian Disses Kourtney As 'Least Exciting To Look At' In Brutal Fight
Papa John's founder says he has 'no confidence' in current management team, including CEO Steve Ritchie
Apple is now worth $1,000,000,000,000
There's a very simple reason Trump wants to sit down with Mueller
NASA says we can't terraform Mars. Elon Musk disagrees
Giant hands lift new Vietnam bridge toward heavens
Bank of England poised to raise interest rates
Mount Olympus: Google doodle celebrates Greece's Mount Olympus and its heroic climbers
BREXIT LIVE: Remainers turn AGAINST EU and warn 'don't offer May Brexit FUDGE'
Life Needs Sunlight — and That Could Change Where We Look for Aliens
Reddit hacked, despite SMS two-factor authentication
Tesla Doubles Loss, but Burns Less Cash Than Expected
Colbert Finds A Way He Could Actually Vote For Trump
Madonna Reveals She Fled To Portugal To Escape Trump
US threatens raising tariffs to 25% on $200 billion of Chinese goods
Ex-wife of Ohio State assistant fired for abuse says Urban Meyer knew of case
Protests in Denmark as 'burqa ban' comes into effect
Manafort put himself 'above the law' to fund his expensive tastes, court hears
LONDON BLOODBATH: One man dead and two injured after triple stabbing in Camberwell
3 Russian journalists killed while filming documentary on private Russian security group in Africa
Bermuda Triangle mystery 'solved,' scientists claim
If We Ever Want to Walk on Mars, We'd Better Get Serious About Planetary Protection
Mother of missing Iowa college student recounts last text she sent to daughter
Close