SAN FRANCISCO — A lawyer for Tesla Inc investors said on Wednesday that CEO Elon Musk “lied” when he tweeted in 2018 that funding was “secured” to take the…
Tesla investor Glen Littleton is seeking damages on behalf of shareholders who traded the company’s stock in the days after Musk posted his plan to take the company private on Twitter in August 2018.
A jury of nine will decide whether the tweets artificially inflated Tesla’s share price by playing up the status of funding for the deal, and if so, by how much.Article content The defendants, who also include current and former Tesla directors, have said they will argue that the stock price jumped in response to Musk saying he was considering taking the company private, which they say was the case, not his assertion about funding.
U.S. District Judge Edward Chen, who is overseeing the trial, has ruled that Musk’s statements about the status of the deal were false and Musk made them recklessly. The deal did not happen.While shareholders sue hundreds of companies and their executives for alleged securities fraud every year, very few of those cases make it to trial. The vast majority are either dismissed by courts or settle.
Not among the jurors selected on Tuesday were some critics of Musk, such as one potential juror who said the chief executive, who has gained a reputation for the unpredictable, was “a little off his rocker.”Share this article in your social network
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