At the time, Elon Musk also paid a $20 million fine and stepped down as Tesla’s chairman.
New York:
A 2018 tweet posted by Elon Musk in which he claimed to have received funding to take Tesla private was called “false and misleading” by a judge, according to documents filed by investors suing his electric car company Was considered.
shareholders have Tesla accused of securities fraud over their stock market losses In view of the tweet dated August 7, 2018, which caused the stock price to fluctuate wildly for several days.
In a court filing late Friday, the plaintiffs asked the federal judge in charge of the case, Edward Chen, to order Musk to restrain Musk from publicly saying he was “safe” to take Tesla private at $420 per share. Funded, as he said again on Thursday.
In the past, the billionaire entrepreneur has said he was in talks with Saudi Arabia’s Sovereign Wealth Fund at the time and was confident he would reach a deal. But no agreement was ever announced.
According to the filing, Chen concluded in a recent order that Musk’s statements were “false and misleading,” and “recklessly and with full awareness of the facts that he misrepresented in his tweets.” “
The plaintiffs accuse Musk of engaging in “a high-profile public campaign to present a contradictory and false narrative about his tweets of August 7, 2018″—the final ones submitted to the trial set later this year. Can impress gamblers.
US markets regulator Securities and Exchange Commission also accused him of fraud in the wake of the tweets.
He eventually agreed to a settlement to settle the charges, which required Tesla’s lawyers to review any social media posts with information deemed “material” to shareholders.
He also paid a $20 million fine and stepped down as chairman of Tesla.
Musk, who has unveiled a hostile takeover bid of $43 billion for Twitter, said on Thursday that he felt compelled in a deal with the SEC to protect Tesla.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)