The law firm of Labaton Sucharow said in a release that
it filed a suit in US federal court in San Francisco on behalf of short seller Andrew Left and that it is asking for class action status to represent anyone who bought or sold Tesla shares between August 7 and August 17.
"This appears to be a textbook case of fraud," law firm partner Michael Canty said in the release.
"We believe Musk attempted to manipulate the price of Tesla securities with false and misleading tweets, in a directed effort to harm short-sellers."
Musk late last week announced that the company would continue to be publicly traded, weeks after suggesting that he would take the pioneering electric carmaker private.
Musk met Tesla's board of directors "and let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree," he wrote on the company blog.
Musk surprised markets on August 7 by announcing on Twitter he wanted to take Tesla private at $420 a share, causing the stock price to jump. Short-sellers bet on share prices dropping.
Read more at: https://phys.org/news/2018-09-lawsuit-accuses-tesla-short-sellers.html#jCp
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