From Insider Trading To Racism Allegations, Elon Musk And His Companies Face A Mountain Of Legal Challenges
Jason Cohen on October 7, 2023
Billionaire Elon Musk and his companies face a multitude of legal challenges from a variety of sources, ranging from insider trading to racism allegations, according to Reuters.
Many of Musk’s and his companies’ legal challenges stem from President Joe Biden’s administration, but they also include entities outside of his government, according to Reuters. A vast majority of the current legal challenges have arisen since Musk acquired social media platform Twitter — now X — in October 2022.
Investors accused Musk of insider trading in a June lawsuit, asserting that Musk engaged in manipulation of the cryptocurrency Dogecoin, resulting in their losing billions of dollars, according to Reuters. The lawsuit includes Musk changing the Twitter logo to a Dogecoin Shiba Inu dog logo in April, causing a 30% rise in its value, and then selling around $124 million worth of the cryptocurrency.
Moreover, SpaceX, Tesla and X are all accused of different forms of discrimination.
The Department of Justice (DOJ) is investigating Musk’s spacecraft company SpaceX for allegedly discriminating by not hiring refugees and asylum seekers, according to an August filing.
Furthermore, the Equal Employment Opportunity Commission (EEOC) sued Musk’s electric car company Tesla over alleged racism in September, according to a lawsuit announced by the federal agency. Black personnel allegedly dealt with numerous instances of racist abuse and derogatory slurs at Tesla’s manufacturing facilities in Fremont, California, from at least 2015 until 2023.
Tesla allegedly allowed this racism to take place and unlawfully sought revenge against those who stood up against it, according to the complaint.
X is also facing a lawsuit for age discrimination due to allegedly firing older employees in a disproportionate manner after Musk took over the social media platform, according to Reuters.
A comprehensive overhaul of these agencies is sorely needed, along with a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain.
Can’t wait for this to happen.
— Elon Musk (@elonmusk) October 5, 2023
Most recently, the Securities and Exchange Commission (SEC) sued Musk to force him to testify in an investigation related to his acquisition of Twitter, according to a Thursday filing. Musk allegedly may have violated securities laws related to buying shares of Twitter Inc. preceding his acquisition of the company.
The SEC served Musk a subpoena in May, but he did not show up at a scheduled mandatory testimony in September, although he had agreed to do so, according to the SEC.
X, SpaceX and Tesla did not immediately respond to the Daily Caller News Foundation’s request for comment.
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