BY Jack Davis, The Western JournalFebruary 4, 2023
1 year ago

Elon Musk Scores Major Legal Victory in Multibillion-Dollar Lawsuit Over Tweets

Elon Musk dodged a multibillion-dollar bullet on Friday as a jury ruled that he was not liable for any losses Tesla investors suffered after Musk posted on Twitter in 2018 that he would take the electric vehicle company private.

The $72 billion deal never took place, and shareholders subsequently accused Musk of misleading them, according to the BBC.

Two posts by Musk from August 2018 sent Tesla stock soaring, The New York Times reported.

In one, Musk wrote, “Am considering taking Tesla private at $420. Funding secured.” He followed that with, “Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote.”

Three weeks later, the stock plummeted because the deal never happened.

The San Francisco jury deliberated for less than two hours before reading their verdict, according to the BBC.

Musk might have been on the hook for billions of dollars in damages had he lost the case.

Judge Edward Chen, who was hearing the civil suit, had ruled that the words “funding secured” in the first post and Musk’s entire second post were not true, and that Musk was reckless when he posted them.

[firefly_poll]

With that as the backdrop, Adam C. Pritchard, a law professor at the University of Michigan, said Musk's win defied the odds.

“I thought he was crazy to try his chances at trial, given the stakes involved. ... You’re fighting with one hand behind your back in that situation -- and yet he won,” he said.

“Thank goodness, the wisdom of the people has prevailed!” Musk tweeted.

Nicholas Porritt, a lawyer for the plaintiffs, was less upbeat.

“We are disappointed with the verdict and considering next steps,” he said.

After the verdict, as jurors answered questions from lawyers for the defeated plaintiffs, one juror said their case never connected.

“There was nothing there to give me an ‘aha’ moment,” the juror said. “Elon Musk is a guy who could sneeze and the stock market could react.”

The investors contended Tesla was nowhere near going private.

“This case is about whether rules that apply to everybody else should apply to Elon Musk,” Porritt said during the trial.

Musk’s legal team said the truth was a defense because Musk was in fact considering taking the company private.

Musk said he thought funding from a Saudi Arabian fund would materialize, but it did not.

Musk and Tesla eventually paid $40 million in fines to the Securities and Exchange Commission over the tweets about the plan to take Tesla private. That settlement gave rise to a requirement Musk is trying to remove in which a lawyer reviews certain statements about Tesla before Musk posts them.

This article appeared originally on The Western Journal.

Written by: Jack Davis, The Western Journal

NATIONAL NEWS

SEE ALL

Fani Willis Faces Rising Calls For Indictment Over Alleged Perjury

In an unexpected twist in a high-profile case, former President Donald Trump's attorney has brought forward allegations that could potentially upend the ongoing investigation into…
20 hours ago
 • By Staff Writers

A-Rod’s New Image Leaves Fans Bewildered

In an unusual turn of events, Alex Rodriguez's markedly darker tan became the talk of the town after a recent basketball game. Alex Rodriguez, co-owner…
20 hours ago
 • By Staff Writers

Donald Trump’s 2022 Decision To Sell DC Hotel Proves Prescient

In a dramatic turn of events echoing the volatile nature of real estate and politics, the Trump International Hotel in Washington, D.C., finds itself at…
20 hours ago
 • By Staff Writers

Judge Strikes Down CA Billy Club Ban On Second Amendment Grounds

In a landmark decision, a federal judge has declared California's prohibition on billy clubs unconstitutional. A U.S. District Judge ruled against California's billy club ban,…
20 hours ago
 • By Staff Writers

Mike Johnson Shuts Down Rumors He Is Anti-IVF

In a striking move that blends the boundaries between law and ethics, Alabama's highest court has redefined the status of fertilized embryos. This bold decision…
22 hours ago
 • By Staff Writers

DON'T WAIT.

We publish the objective news, period. If you want the facts, then sign up below and join our movement for objective news:

    LATEST NEWS

    Newsletter

    Get news from American Digest in your inbox.

      By submitting this form, you are consenting to receive marketing emails from: American Digest, 3000 S. Hulen Street, Ste 124 #1064, Fort Worth, TX, 76109, US, http://americandigest.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact.
      Christian News Alerts is a conservative Christian publication. Share our articles to help spread the word.
      © 2024 - CHRISTIAN NEWS ALERTS - ALL RIGHTS RESERVED
      magnifier