D&O Insurance Implications From Tesla's Stock Drop Suit

By Tae Andrews (May 4, 2021, 5:44 PM EDT) -- As several companies have learned the hard way over the past few months, many things can result from having a presence on social media — and a lot of them aren't good for business.

Social media presents necessary but treacherous terrain for companies: Many brands must maintain an active presence to remain relevant and compete in the marketplace, but misuse, or even perceived misuse, presents hazards that can attract U.S. Securities and Exchange Commission investigations and shareholder lawsuits.

A recent lawsuit, filed against Tesla Inc. on March 11, showcases the legal perils that can follow missteps on social media.

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