قالب وردپرس درنا توس
Home / Insurance / Musk ruthlessly tweeted “funding secured” to take Tesla private: Court

Musk ruthlessly tweeted “funding secured” to take Tesla private: Court



(Reuters) – A court ruled that Elon Musk’s 2018 tweets that funding was secured to take Tesla privately were erroneous and ruthless, saying that “there was nothing concrete” about funding from Saudi Arabia’s sovereign wealth fund at the time.

The decision by U.S. District Judge Edward Chen in San Francisco is a major victory for investors who claim that Musk inflated stock prices by making false and misleading statements, causing billions in damages.

In 2018, Musk met with representatives of Saudi Arabia’s public investment fund and had a discussion about taking Tesla private, but evidence shows that “there was nothing concrete about funding from PIF”

;, the judge wrote.

“Rather, the discussions between Tesla and PIF were clearly in the preliminary stages.

“No reasonable jury could find that Mr Musk did not act ruthlessly given his clear knowledge of the discussions,” he said.

He said details such as the total amount of financing needed to take Tesla private or the price to be paid for Tesla shares were not discussed.

The summary verdict, handed down on April 1, was sealed for more than a month before it became publicly available on Tuesday.

“This is extremely important,” shareholders’ lawyer Nicholas Porritt, a partner at Levi & Korsinsky LLP, told Reuters.

He said it was rare for the class action lawsuit to receive a summary judgment on falsehood and science before going to a jury trial, scheduled for January.

The remaining question is what damage the intentionally false statement has caused the shareholders, he said.

The judge refused to give shareholders a summary judgment on the question of whether or not the alleged false statements actually affected Tesla’s share prices.

Musk’s lawyer, who has filed motions to overturn the court decision, was not immediately available for comment. Musk recently said that funding was actually secured to take Tesla private in 2018.

The latest ruling was in line with a complaint from the US Securities and Exchange Commission that sued Musk for fraud charges for the tweeters in 2018. He settled with the US Securities and Exchange Commission, resigned as chairman of Tesla, paid fines and agreed to have a lawyer approve some of his tweets before publishing them.


Source link