Musk accused of selling $7.5 billion of Tesla stock before releasing disappointing sales data that plunged the share price to two-year low
fortune.com
- Elon Musk accused of illegally selling $7.5 billion in Tesla stock in Q4 2022.
- Lawsuit alleges Musk and board violated fiduciary duties by selling shares ahead of disappointing vehicle sales data.
- Shareholder seeks disgorgement of $3 billion in illegal gains and damages from directors for reckless behavior.
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Didn't Martha Stewart go to prison for this exact thing?
No. She went to jail for lying to the feds.
Her financial manager was suspected of insider trading. The FBI questioned her about it and she lied to them in an attempt to protect him.
Did her financial manager insider trade?
Probably. She was not found guilty of lying about her reason for selling the stock in question, though she was found guilty of obstruction and other lies, along with conspiracy.
She was never charged with insider trading, so if she hadn't lied, she would likely have been fine.
Interestingly, they also charged her with securities fraud. They argued that, as the face of a publicly traded company, covering up a crime was market manipulation even if it had nothing to do with that company. The judge dismissed that charge.
Damn, I hope Elmo lies to the feds. He's dumb enough to.