Tesla Securities Shareholders Derivative Litigation
EMPLOYEES’ RETIREMENT SYSTEM OF RHODE ISLAND V. ELON MUSK, ET AL., 2024-0631 (DEL CH.)
Lieff Cabraser represents Plaintiff the Employees’ Retirement System of Rhode Island in this recently-filed stockholder derivative action against Elon Musk and certain current and former members of the Board of Directors of Tesla, Inc. (“Tesla”). The action alleges breaches of fiduciary duties including: (a.) unlawful stock sales in connection with Elon Musk’s purchase of Twitter, Inc. (“Twitter,” rebranded as “X”); (b.) usurpation of corporate opportunity properly belonging to Tesla by investment in X.AI, an artificial intelligence company; (c.) diversion of Tesla’s employees to work for Twitter and X.AI; (d.) breaches of contractual obligations established by Tesla’s Code of Business Ethics (“Code”); (e.) bad faith implementation and oversight regarding Tesla’s Code; and (f.) bad faith implementation and oversight regarding the 2018 Consent Decree with the Securities Exchange Commission that required Musk to obtain Tesla’s preapproval on tweets relating to his disposition of Tesla stock.
