A Twitter message that the Tesla boss has secured funding to take the electric car maker off the stock exchange is at the heart of the fraud case against Musk.
In August 2018, Tesla CEO Elon Musk wrote on Twitter that he is considering listing Tesla for $420 per share, and that this funding is secured.
The letter was concluded by a federal judge that it was “incorrect and misleading,” according to court documents filed with investors by the plaintiff on Friday. Several media reports. The judge’s ruling was issued on April 1.
– The court concluded that he made these statements mercilessly with his knowledge that they were incorrect, and this was stated in court documents from investors, according to Reuters.
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Tesla investors believe the message and subsequent tweets were clearly incorrect, and that price fluctuations thereafter cost them billions of dollars, he writes Bloomberg. Therefore, they are seeking damages in a fraud case that will go to court in May.
Tesla’s stake was sent with a real raise in the time following the announcement in 2018, and many also questioned whether funding was actually secured. Musk canceled the plans just two weeks after the Twitter message was posted.
The judge’s decision will be significant for the trial in May, according to Bloomberg. If the appeal is not pursued, Musk and his attorneys throughout the case will not be able to claim that the Twitter message was true. The question then will be whether losses incurred by investors can be linked to the messaging.
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Musk and his lawyers have long claimed that what he wrote is true, and that he got the funding. The lawyers claimed, among other things, that the Saudi state fund agreed to support the plans.
“Nothing will ever change the fact, which is that Elon Musk thought about pulling Tesla off the stock exchange and could have done so,” Alex Spiro, Musk and Tesla’s attorney, said on Saturday.
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