Elon Musk cleared of Tesla investor lawsuit over tweets about the company

A federal jury in San Francisco (USA) announced businessman Elon Musk this Friday. Not responsible for the million-dollar losses several investors attributed to their 2018 tweets Something that never happened, where he said he had enough money to take Tesla public.

The nine-member jury delivered its verdict just two hours after it was withdrawn from deliberation after three weeks of civil litigation. If the businessman misled investors with his controversial messages on Twitteraccording to local media reports.

It’s a victory for Musk, who testified throughout the process to ensure he had enough capital to take the company public thanks to commitments from the Saudi Arabian state wealth fund and his own involvement from the US. SpaceXHe also stated that he has no ill will towards investors.

I’m considering going public with Tesla at $420. secure financingThe tweet under scrutiny of the lawsuit, in which Musk cited the price per share that he could offer in the operation and could value the company at around $72,000 million, said.

He then added another message, “Investor support has been confirmed. The only reason this isn’t certain is because it depends on the shareholder’s game.”

after messages Tesla’s share price rose sharply and then fellWe were told days later when the media started reporting that he had not actually secured that funding.

Musk seemed to be off to a disadvantage, as Judge Edward Chen found these statements to be false and misleading, but the jury had to determine whether these were the messages that influenced Tesla’s price. possible intention of the accused and the cost they have for plaintiffs.

The jury had to first decide whether Musk’s messages were misleading to investors, and then calculate their economic impact, so the businessman would have to reject this initial assumption and avoid having to pay millions of dollars in damages to the plaintiffs.

According to The Wall Street Journal, the panel said: investors did not provide sufficient evidence to support the claim that Musk harmed them by writing tweets about the potential IPO.

Alex Spiro, one of Musk’s and Tesla’s attorneys, who was also the defendant, commented, “The jury understood the right thing. That’s all I’m going to say,” after the verdict was announced, while the investor defense said they were considering their next steps. , according to the local press.

The tweets had already led the US Securities and Exchange Commission to accuse Musk of fraud in 2018, and the businessman accepted a $20 million fine as a sanction. and has left as chairman of the company’s board for at least three years, although he remains its CEO.

Source: Informacion

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