The saga just goes deeper and broader. None of this is positive news for Tesla, whose stock would be needed to finance any large payout.

First some background on Jack Dorsey

Jack built Twitter with launched in 2004. He had his doubts and began working on Bluesky; an app, a portal and a strategy to address defects he already saw in Twitter.

Wikipedia – Blue Sky Open Platform

Bluesky is an initiative to develop a decentralized social network protocol, such that multiple social networks, each with its own systems of curation and moderation, can interact with other social networks through an open standard. Each social network using the protocol is an “application”

Parallels

Decentralised, curation, open, application; some clear similarities to #mastodon.

Other factors – Whistleblower – Peiter Zatko

The former head of security at Twitter Inc., Peiter Zatko, is joining cybersecurity company Rapid7 Inc., following a whistleblower complaint to federal authorities last year in which he alleged security risks and mismanagement at the social media giant.

“Coincidentally” Twitter’s shareholders approved Elon Musk’s takeover of the company on the same day as Mr. Zatko’s hearing before Congress, following a high-profile legal battle.

In his whistleblower complaint, Mr. Zatko accuses the company of failing to protect sensitive user data and lying about its security problems.

The SEC case: Sec case against Tesla & Musk

https://www.sec.gov/divisions/enforce/claims/tesla

SEC v. Elon Musk Case No. 18-cv-8865 (S.D.N.Y.) SEC v. Tesla, Inc. Case No. 18-cv-8947 (S.D.N.Y.)

On September 27, 2018, the Commission filed a complaint (the “Musk Complaint”) against Elon Musk, the CEO of Tesla, Inc. (“Tesla”). The Musk Complaint alleged that on August 7, 2018, Musk made a series of false and misleading statements regarding taking Tesla, a publicly traded company, private. See the Musk Complaint. On the same day, the Commission also filed a complaint (the “ Tesla Complaint”) against Tesla . The Tesla Complaint alleged that, Tesla failed to implement disclosure controls or procedures to assess whether information disseminated by its CEO, Musk, via his Twitter account was required to be disclosed in reports Tesla files pursuant to the Securities Exchange Act of 1934. See the Tesla Complaint

Investors contend Tesla’s CEO was intentionally deceitful when he tweeted the go-private proposal to his millions of Twitter followers on Aug. 7, 2018, adding that the transaction was buttressed by “funding secured.”

Lawyers for shareholders have never publicly revealed how much they’re seeking in damages for hundreds of investors. A recent court filing by Musk and Tesla cited “billions” at stake.

WASHINGTON (AP) — Elon Musk has urged a federal judge to shift a trial in a shareholder lawsuit out of San Francisco because he says negative local media coverage has biased potential jurors against him.

Instead, in a filing submitted late Friday — less than two weeks before the trial was set to begin on Jan. 17 — Musk’s lawyers argue it should be moved to the federal court in the western district of Texas. That district includes the state capital of Austin, which is where Musk relocated his electric car company, Tesla, in late 2021.

The shareholder lawsuit stems from Musk’s tweets in August 2018 when he said he had sufficient financing to take Tesla private at $420 a share — an announcement that caused heavy volatility in Tesla’s share price.

In a victory for the shareholders last spring, Judge Edward Chen ruled that Musk’s tweets were false and reckless.