15:16
Traffic jam:   4
$
91.3336
98.7225

Elon Musk found not guilty of fraud over Tesla tweet in 2018

4 February 2023
12912
2 min.
10
Elon Musk found not guilty of fraud over Tesla tweet in 2018

Musk not guilty

A jury in a California state court has found Elon Musk not guilty in a lawsuit brought by shareholders of the company he heads, Tesla. This was reported by CNN.

The lawsuit is based on a Twitter post by Musk, dated August 2018, in which he said he was considering a $420-a-share buyout of Tesla.

According to the plaintiffs, Musk's publication of the deal, which ultimately failed to materialise, caused first a spike and then a drop in the company's share price, which the victims said caused them to lose billions of dollars.

The plaintiffs sought compensation from Musk for the financial damage they believe was caused by the entrepreneur's record. The jury agreed that the businessman was not responsible for the investors' financial losses, stressing that the plaintiffs had not provided solid evidence for the allegations. "Thank God the wisdom of the people has prevailed," Musk said on Twitter, commenting on the court's decision.

Nicholas Porritt, a lawyer for Tesla shareholders, said: "Our society is based on rules. We need rules to save us from anarchy. The rules should apply to Elon Musk as they do to everyone else."

Mr Musk's lawyer Alex Spiro said: "Just because it's a bad tweet doesn't make it fraudulent."

After the verdict, Mr Porritt said: "We are disappointed with the verdict and are considering the next steps."

Several Tesla directors also gave evidence, including James Murdoch, Rupert Murdoch's son. They testified that Mr Musk did not need Tesla's board to review the ransomware tweets.

Securities fraud lawyer Reed R. Katherin called the Tesla shutdown tweet "as specific a statement about shutting down the company as possible" and said the acquittal was "a travesty of investors and securities laws".

The US SEC also sued Musk in 2018, accusing him of forgery and misleading shareholders with his Twitter postings. Under a pre-trial agreement between Tesla and the commission, reached in September that year, Musk was ordered to pay $20 million and step down as chairman of Tesla, while retaining his position as Chief Executive Officer of the company. The company itself was also ordered to pay 20 million dollars, in addition, it appointed two independent directors.

Persons6 and Companies4 in the news

Partner of Hagens Berman Sobel & Shapiro LLP
1 place
British-American businessman
2 place
Lawyer
3 place
attorney at Levi & Korsinsky
4 place
Founder of News Corp
5 place
CEO of Tesla
6 place
X (Twitter)
2 place
Tesla
3 place
CNN
CNN
4 place
Section:
Source foto:
flickr.com

Discussion

Rating companies
JP Morgan Chase
16 Mention
Instagram
13 Mention
Tesla
12 Mention
Walt Disney Company
11 Mention
Nasdaq
9 Mention
Amazon
9 Mention
Ford Motor Company
9 Mention
Netflix
9 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8106464818
Died this year
10029428
Born this year
24674168