Some investors in Tesla said that they have obtained a key ruling on Musk's previous announcement to privatize Tesla Tweets for suspected securities fraud, which may lead tesla and Musk to face billions of damages. It is reported that these Tesla shareholders have previously launched a class action lawsuit against Musk's "privatization tweet" released in 2018.
It is reported that the presiding judge of the case, Edward M. Chen, has ruled and said that "Musk is a knowing offender", that is, "he deliberately made a false statement when he tweeted, claiming that he raised privatization funds". In addition, he said that "no reasonable jury would have considered Musk's August 7, 2018 tweet accurate or misleading."
If Tesla does not appeal this time, the ruling will put it at a disadvantage in the jury trial at the end of May, because they will not have the right to verify the authenticity of the tweet. According to sources, the main arguments of the litigants may focus on the connection between Musk's privatization tweets at the time and the losses they suffered.
In response, some of these Tesla investors have said that Musk's previous tweets are "indisputably false" and have caused Tesla's stock price to fluctuate sharply, which has cost them billions of dollars. Musk's lawyer countered that the tweets he posted were "completely true" and said that "nothing could have changed the facts, that Musk had considered taking Tesla private and could have done it," and he accused the appellant of "the plaintiff's lawyers trying to make money, and others trying to prevent the truth from coming out."
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