Elon Musk has been exonerated of his tweets in 2018 claiming that he had “funding secured” for Tesla’s privatization for $420 per share. After a lengthy trial in San Francisco, a jury found Musk not responsible for the losses of Tesla investors.
Musk could have been held liable for billions in damages, but the verdict is a significant victory. Musk testified before federal court that simply because Musk tweets something, it does not mean that people believe it and will act accordingly. Musk also claimed that he could have used SpaceX shares to finance the deal.
The class action lawsuit was brought by shareholders who claimed that Musk’s statements regarding funding were false and that they had suffered huge losses due to stock market fluctuations that followed Musk’s tweets. The judge in the case concluded the tweets were “objectively falsified and reckless”, but the jury did not find Musk intentionally misleading the public.
Although the verdict is the end of the long-running saga of “funding secured tweets”, Musk was not immune to the consequences. As a condition to the settlement, he settled with the Securities and Exchange Commission and resigned as Tesla board chair. Musk has long decried settlement with the Securities and Exchange Commission. He said that he was forced to confess to lying to save Tesla’s lives.
Alex Spiro, Musk’s lawyer, stated that the jury had gotten it right in a statement to Bloomberg. Musk, naturally via Twitter, also expressed his gratitude for the verdict and said he was “deeply grateful.”
The wisdom of the people prevailed, thank goodness!
Thank you to the jury for unanimously finding me innocent in the Tesla 420 case.
Elon Musk (@elonmusk), February 3, 2023 Update 2/3/7:19 ET: Elon Musk has added a tweet about the verdict.
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By: Karissa Bell
Title: Jury rules Elon Musk is not liable for shareholder losses after ‘funding secured’ tweets
Sourced From: www.engadget.com/elon-musk-tesla-shareholder-trial-verdict-232434731.html
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