A group of plaintiffs said the businessman misled them through a series of messages in 2018. The jury found the claims unfounded.
A US court has dismissed a group of investors in a lawsuit against Tesla CEO Elon Musk for violating securities laws. This was reported on February 6 by the Interfax-Ukraine agency.
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The businessman was accused of misleading shareholders in his tweets in August 2018, and they lost billions of dollars because of them.
As you know, Musk wrote that he will buy shares of the automaker at a price of $ 420, and “funding is secured.”
The plaintiffs said the Tesla chief lied when he wrote about “confirming investor support.” The share price rose after the tweets, but fell again a few days later when it became clear that the deal would not go ahead.
According to an economist hired by the shareholders, the loss of investors was estimated at $12 billion after many made decisions to buy and sell their shares based on the positions of the company’s leaders.
The jury unanimously found the group of plaintiffs’ claims without merit. In particular, the jury answered the question of whether the information disclosed by Musk about a possible deal was significant in terms of investors’ decision-making, and also whether the distortion of this information caused them losses.
It is noted that investor class action lawsuits in the United States rarely reach court, but Musk rejected the settlement agreement and was able to prevail in court.
The businessman told the court that his message about the share buyback was “absolutely true.” According to him, he is confident that he secured financing for the deal from a Saudi investment fund and through his stake in SpaceX.
Musk also emphasized that the size of Twitter messages (240 characters) “does not allow for complete information.”
His lawyer pointed out that the decision to publish a message about the financing of the Tesla share buyback was made “in a split second” and in haste the entrepreneur “used the wrong word.”
The trial continued for three weeks.
Recall that in 2018, Musk paid a $20 million fine to settle claims from the Securities and Exchange Commission regarding his disclosure on Twitter about a possible Tesla share buyback deal.
As part of the settlement, Musk agreed to review his tweets with company lawyers to ensure compliance with legal requirements for disclosure of material information.
However, Musk has repeatedly spoken of his innocence and criticized the SEC settlement.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.