Tesla Inc Chief Executive Elon Musk has been sued by a shareholder who accused him of violating his 2018 settlement with the Securities and Exchange Commission over his Twitter use.

According to a complaint unsealed late Thursday in Delaware Chancery Court, which also names the electric car company's board as defendants, Musk's "erratic" tweets and the failure of Tesla directors to ensure he complied with the SEC settlement have exposed shareholders to billions of dollars of losses.

The complaint highlighted several Musk posts on social media platform Twitter, including his assessment last May 1 that Tesla's stock price was "too high," prompting a more than $13 billion tumble in Tesla's market value.

Chase Gharrity, the plaintiff, said Musk's actions and the directors' inaction have caused "substantial financial harm," and that they should pay damages to Palo Alto, California-based Tesla for breaching their fiduciary duties.

More in category

Opinion: A futurist reveals the powerful technique that can change your tomorrow and give you the life you want
April 21, 2021MarketWatch
Opinion: A futurist reveals the powerful technique that can change your tomorrow and give you the life you want
The ‘Red Wedding’ of soccer: How Twitter reacted to the European Super League’s dramatic collapse
April 21, 2021MarketWatch
The ‘Red Wedding’ of soccer: How Twitter reacted to the European Super League’s dramatic collapse
China’s Xi will speak at Biden’s virtual climate summit
April 20, 2021MarketWatch
China’s Xi will speak at Biden’s virtual climate summit
UiPath IPO: 5 things to know about the ‘software robots’ company valued at nearly $30 billion
April 20, 2021MarketWatch
UiPath IPO: 5 things to know about the ‘software robots’ company valued at nearly $30 billion
Stock-market sentiment shifts after investor euphoria pushed U.S. equities to record highs
April 20, 2021MarketWatch
Stock-market sentiment shifts after investor euphoria pushed U.S. equities to record highs
Exxon floats idea for $100 billion private-public carbon capture hub, largest of its kind
April 20, 2021MarketWatch
Exxon floats idea for $100 billion private-public carbon capture hub, largest of its kind
Opinion: There is a new normal for Netflix, and that is not necessarily a bad thing
April 20, 2021MarketWatch
Opinion: There is a new normal for Netflix, and that is not necessarily a bad thing
Netflix predicts worst quarter for streaming growth in its history, stock falls 9%
April 20, 2021MarketWatch
Netflix predicts worst quarter for streaming growth in its history, stock falls 9%
Opinion: High-momentum stocks have been losing steam and this could be signaling a market top
April 20, 2021MarketWatch
Opinion: High-momentum stocks have been losing steam and this could be signaling a market top
William Morris parent Endeavor filed for an IPO again, and it’s adding Tesla’s Elon Musk to its board
April 21, 2021MarketWatch
William Morris parent Endeavor filed for an IPO again, and it’s adding Tesla’s Elon Musk to its board
The average Cadillac Escalade is selling for over $102,000, report says
April 21, 2021FOX Business
The average Cadillac Escalade is selling for over $102,000, report says
I Still Don't Believe in a GameStop Turnaround
April 21, 2021The Motley Fool
I Still Don't Believe in a GameStop Turnaround
Cadillac rolls out its $60,000 Lyriq EV as it phases out gas engines
April 21, 2021CNBC
Cadillac rolls out its $60,000 Lyriq EV as it phases out gas engines
More wealthy investors going to cash, but millionaire bears still minority
April 21, 2021CNBC
More wealthy investors going to cash, but millionaire bears still minority
These 2 Dividend Stocks Have More Than Doubled Their Payouts in 5 Years David Jagielski | Apr 21, 2021
April 21, 2021The Motley Fool
These 2 Dividend Stocks Have More Than Doubled Their Payouts in 5 Years David Jagielski | Apr 21, 2021
Better Semiconductor Stock: ASML vs. TSMC
April 21, 2021The Motley Fool
Better Semiconductor Stock: ASML vs. TSMC
Lilac! Orange sherbet! Mint green! Why Apple is embracing delicious new colors
April 20, 2021Fast Company
Lilac! Orange sherbet! Mint green! Why Apple is embracing delicious new colors
Maserati's struggles to become a true luxury contender
April 21, 2021CNBC
Maserati's struggles to become a true luxury contender
Demand may exceed supply as CEO of one of the world’s biggest hotel groups sees ‘surge’ in bookings
April 21, 2021MarketWatch
Demand may exceed supply as CEO of one of the world’s biggest hotel groups sees ‘surge’ in bookings
Middleby to acquire Welbilt in all-stock deal valued at $4.3 billion
April 21, 2021MarketWatch
Middleby to acquire Welbilt in all-stock deal valued at $4.3 billion
European stocks rebound from worst losses in four months, led by chipmaker ASML
April 21, 2021MarketWatch
European stocks rebound from worst losses in four months, led by chipmaker ASML