cross-posted from: https://programming.dev/post/15086231
- 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.
I don’t understand why people who have insider knowledge are ever allowed to sell or buy that stock. Seems made for corruption.
Normally they will hand off all the stock trading to a third party so there is no conflict.
You can’t stop promoters from trading their own stock but there are strict rules for them.
They cannot make a trade based on insider information before it’s Public.
Well clearly they can. They’ll always know things before they happen that will affect the stock price.
They have to eventually make that information public and SEC will track the large buy/sell order taken place before the information is public.
So it’s pretty quick and easy to catch them if someone wants to.
So prison right? Like for everyone else when they do illegal stuff
The SEC will give him a stern finger wagging
Finally someone is gonna finger that asshole
🥺👉👈
Best I can do is $100k fine.
