Originally Syndicated on May 15, 2023 @ 7:09 am
In a securities case against him that a group of Tesla investors had brought based on tweets he had sent five years earlier, a jury recently found the renowned billionaire Elon Musk not guilty.
Background of the Lawsuit Against Elon Musk and Tesla
According to reliable sources, a unanimous panel recently exonerated well-known entrepreneur and visionary Elon Musk of all charges after only two hours of deliberation.
Elon Musk, a well-known billionaire and visionary, told the public in August 2018 that he planned to buy Tesla shares at an amazing $420 per share. The goal of this risky move was to turn the company into a completely private business, making it even stronger as a leader in the auto industry. After the negotiations didn’t work out, Tesla’s price was very unstable for a long time.
In a recent event, a jury in San Francisco agreed with Elon Musk’s case. Musk is a well-known entrepreneur and visionary. The jury has agreed that Mr Musk did think that the deal was “secured” at the time because of the Saudi sovereign wealth fund. This decision shows how smart Mr Musk is as a businessman and how dedicated he is to making sure his businesses do as well as they can.
The rich businessman reacted to the jury’s decision to clear him on Twitter, which is a social media site.
God bless; the smarts of people have won! Elon Musk, a well-known entrepreneur and visionary, thanked the respected panel very much for their unanimous decision to clear him. In a speech to the press, Musk showed his appreciation for the way the legal system upholds the values of fairness and justice.
The decision, which cleared Musk of any wrongdoing, showed how committed he is to honesty and ethics in everything he does. The creative leader hasn’t changed his mind about wanting innovation and progress, and he’s ready to keep making big changes in the world.
Jury Acquits Tesla and Elon Musk of Securities Fraud for 2018 Tweets Regarding Going Private
On February 3, 2023, in the matter In re Tesla Inc. Securities Litigation, Case No. 3:18-cv-04865, a California federal jury cleared Tesla, Inc. (Tesla), and CEO Elon Musk of claims that they committed securities fraud, causing investors to suffer losses of $12 billion. The complaint alleged that the defendants violated the Securities Exchange Act when, after meeting with representatives of Saudi Arabia’s Public Investment Fund, Musk tweeted the following message to more than 22 million followers: “Am considering taking Tesla private at $420. Funding secured.” The complaint alleged that this and other related statements were false and misleading because, in fact, no concrete financing was in place at the time of Musk’s tweets.
At issue during the trial was whether Musk’s tweets were material to the plaintiffs’ investment decisions and led to their financial losses. Counsel for Tesla and Musk attributed the decline in Tesla’s stock price to an interview in which Musk explained that the demands of the company were affecting his health. Other highlights during the trial included testimony by Musk that he considered a verbal pact and a handshake with the managing director of Saudi Arabia’s Public Investment Fund to be akin to “a done deal,” and that he thought he “was doing the right thing” by attempting to keep shareholders informed, as well as testimony by former 21st Century Fox CEO James Murdoch that he was not surprised at Musk’s confidence in the handshake deal because such agreements aligned with Murdoch’s own Mideast experience.
The case serves as an example of how social media can influence public markets and can give rise to potential liability under the securities laws, and is a high-profile example of something that doesn’t happen often: securities claims being decided by a jury.
