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I have no real doubt that Musk's tweets were illegal, given his position. However, I'm not sure what damages are being claimed. If you bought Tesla stock in 2
by powera 4y ago
I have no real doubt that Musk's tweets were illegal, given his position.
However, I'm not sure what damages are being claimed. If you bought Tesla stock in 2018, the stock price would have gone up by a factor of 10 over the next 2 years.
If you are day-trading or buying options, the rule should be caveat emptor.
- toomuchtodo 4y agoLook at the TSLA chart between his tweet and the next peak (very roughly $380/share pre split), and the window of time involved. Those are potential investor losses for those who sold and realized a loss. > If you are day-trading or buying options, the rule should be caveat emptor. Securities fraud makes no such exemption. If you had direct exposure to the security during the alleged fraud, you have standing. “Securities fraud is characterized by the misrepresentation of material information to investors in connection with the sale or purchase of securities and/or the manipulation of financial markets.” SEC Rule 10b-5
- Zigurd 4y agoThere are well-established methods of calculating damages, and lots of case law to provide examples of how those methods are applied and argued over. It is extremely unlikely that the plaintiffs in this case do not base their claims on well traveled ground in similar cases. Arguing from first principles that day traders get what they deserve might be all Elon has got, but, if so, he's hosed.