Andrew Left of Citron Research said on Thursday he is suing Tesla and its CEO Elon Musk for violating federal securities laws.
The lawsuit alleges Musk manipulated the price of Tesla shares by issuing materially false and misleading information, according to a copy of the suit which was posted online and confirmed as authentic by the well-known short seller Left.
The suit specifically cites Musk’s Aug. 7 tweet about taking Tesla private and claiming that funding for that effort had been “secured.” The post sparked weeks of controversy and stock volatility due to questions about funding for his proposal.
Later that month Musk on Aug. 24 said in a blog post the company will remain publicly traded, citing resistance from existing shareholders to his plan to take it private.
Left declined to comment on the lawsuit’s details. Tesla did not immediately respond to a request for comment.
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