3 ms·

Wow, didn’t know that. If SpaceX tanks and 401ks are left holding the bag, this could result in the biggest class action lawsuit ever.

by d--b 4mo ago

Analemma_ 4mo ago
Oh, SpaceX already has that covered: thanks to the TX legislature, SpaceX shareholders cannot file shareholder lawsuits, you can only complain to the "Texas Business Court" or get binding arbitration [0]. [0]: https://www.bloomberg.com/opinion/newsletters/2026-05-21/spacex-investors-can-t-complain https://www.bloomberg.com/opinion/newsletters/2026-05-21/spa...
- michaelmrose 4mo ago
  This is optimistic about binding arbitration providing protection from more traditional remedies
- d--b 4mo ago
  People can surely sue the index publishers for removing the safeguards, or the index funds to take more risks than they were mandated. When money is lost in the order of billions, someone is getting sued.
  - edoceo 4mo ago
    Will take 6+ years and lots of fees lost to recover loss. Won't be anywhere close to made whole.
  - chii 4mo ago
    > someone is getting sued. but that doesnt mean any money gets recovered at all. Musk sure as hell aint giving anything back. The fix is to simply not buy it - those 401k aren't completely passive, you can choose a different investment (instead of NASDAQ index).
  - bell-cot 4mo ago
    > People can surely sue... Would either published indexes or investment funds exist, if suing them for poor performance was anything resembling that easy? I'm thinking "no".
s1artibartfast 4mo ago
why? the cards are on the table. If you buy a turd from me after I disclose the composition, that is on you
- newshackr 4mo ago
  You can't sell these ETFs without incurring capital gains, potentially large. So it isn't really a choice.
  - bobsomers 4mo ago
    If it's actually your 401k, sure you can. Just today I rebalanced my retirement funds away from large cap stocks to avoid this steaming turd that Elon is dumping on the public.
    - andsoitis 4mo ago
      > Just today I rebalanced my retirement funds away from large cap stocks Away from large cap stocks to what?
      - edoceo 4mo ago
        Small-cap, mid-cap and ex-US real estate? That's been floated in my circles - that and the 30 year.
      - AlexCoventry 4mo ago
        For what it's worth, I think anything selling energy or fertilizer which is not sourced from the Middle East is a pretty good bet right now. Depends on how the US/Iran conflict plays out, of course, but I'm not optimistic.
  - cdash 4mo ago
    How is that their problem? That is an issue between you and the government.
  - tonfa 4mo ago
prepend 4mo ago
SpaceX would be the target of the lawsuits. Index funds/401ks are immaterial. Check out previous flops like Enron (only $60b) for examples of lawsuits.

Wow, didn’t know that. If SpaceX tanks and 401ks are left holding the bag, this could result in the biggest class action lawsuit ever.

by d--b 4mo ago

Wow, didn’t know that. If SpaceX tanks and 401ks are left holding the bag, this could result in the biggest class action lawsuit ever.

Analemma_ 4mo ago

Oh, SpaceX already has that covered: thanks to the TX legislature, SpaceX shareholders cannot file shareholder lawsuits, you can only complain to the "Texas Business Court" or get binding arbitration [0]. [0]: https://www.bloomberg.com/opinion/newsletters/2026-05-21/spacex-investors-can-t-complain https://www.bloomberg.com/opinion/newsletters/2026-05-21/spa...

michaelmrose 4mo ago
This is optimistic about binding arbitration providing protection from more traditional remedies
d--b 4mo ago
People can surely sue the index publishers for removing the safeguards, or the index funds to take more risks than they were mandated. When money is lost in the order of billions, someone is getting sued.
- edoceo 4mo ago
  Will take 6+ years and lots of fees lost to recover loss. Won't be anywhere close to made whole.
- chii 4mo ago
  > someone is getting sued. but that doesnt mean any money gets recovered at all. Musk sure as hell aint giving anything back. The fix is to simply not buy it - those 401k aren't completely passive, you can choose a different investment (instead of NASDAQ index).
- bell-cot 4mo ago
  > People can surely sue... Would either published indexes or investment funds exist, if suing them for poor performance was anything resembling that easy? I'm thinking "no".

s1artibartfast 4mo ago

why? the cards are on the table. If you buy a turd from me after I disclose the composition, that is on you

newshackr 4mo ago
You can't sell these ETFs without incurring capital gains, potentially large. So it isn't really a choice.
- bobsomers 4mo ago
  If it's actually your 401k, sure you can. Just today I rebalanced my retirement funds away from large cap stocks to avoid this steaming turd that Elon is dumping on the public.
  - andsoitis 4mo ago
    > Just today I rebalanced my retirement funds away from large cap stocks Away from large cap stocks to what?
    - edoceo 4mo ago
      Small-cap, mid-cap and ex-US real estate? That's been floated in my circles - that and the 30 year.
    - AlexCoventry 4mo ago
      For what it's worth, I think anything selling energy or fertilizer which is not sourced from the Middle East is a pretty good bet right now. Depends on how the US/Iran conflict plays out, of course, but I'm not optimistic.
- cdash 4mo ago
  How is that their problem? That is an issue between you and the government.
- tonfa 4mo ago

prepend 4mo ago

SpaceX would be the target of the lawsuits. Index funds/401ks are immaterial. Check out previous flops like Enron (only $60b) for examples of lawsuits.