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A federal judge has ruled that Tesla CEO, Elon Musk, knowingly made false and misleading tweets in 2018.
The tweets stated that the company had secured funding at $420 per share, and now, Tesla investors are suing Musk over them saying they’re “false and misleading.” The court says Musk “recklessly made the statements with knowledge as to their falsity.”
The investors are suing Musk over the money they lost after the tweets sent the company’s stock into turmoil. Shares were highly volatile for weeks following the tweets, and trading was initially halted.
The investors have sought a temporary restraining order against the Tesla CEO to prevent him from making any further public statements on the matter ahead of the trial.
They claim that Musk “has used his fame and notoriety to sway public opinion in his favor, waging battle in the press having been defeated in the courtroom,” and that his actions risk confusing potential jurors and therefore could sway their decision.
Damages from the shareholders’ class-action lawsuit could amount to billions of dollars, which Musk and Tesla would need to fork out. But Musk’s lawyer claims that the plaintiffs are trying to “make a buck”.
The trial will begin on May 31, in San Francisco federal court.
Keyword: Judge rules Tesla CEO made false and misleading tweets in 2018