DETROIT – A group of Tesla shareholders are suing CEO Elon Musk over tweets from 2018 about the company being private. The group is asking the federation’s judge to order Mr. Musk stopped commenting on the case.
Attorneys for shareholders of Austin, Texas also stated in court papers that the judge hearing the case ruled Elon Musk’s tweets about the “funding obtained” for taking Tesla to be private were false. Furthermore, the judge said his comments violated the 2018 legal agreement with U.S. securities regulators, where Mr. Musk and Tesla agreed to pay a $ 20 million fine.
In an interview on Thursday in TED 2022, Elon Musk mentioned that he had funding to make Tesla private in 2018. He called the US Security Commission (SEC) a dirty name and indicated that he only paid the fine because the banks told him. they would stop giving capital if he did not, and that Tesla would go bankrupt.
The interview with the case comes just days after Mr Musk, the richest man in the world, made a controversial request to take up the social network Twitter and turn it into a private company with an offer of $ 43 billion, or $ 54.20 per share. . The Twitter board of directors on Friday adopted a defense strategy that would make stock buying more expensive for Elon Musk.
In court documents filed Friday, Tesla shareholders’ lawyers claimed that Mr. Musk was trying to persuade prospective judges in the case. They say that Elon Musk’s 2018 tweets about having Tesla’s private money for $ 420 per share were written to control stock prices, which cost investors money.
Proponents of her case have been working to make the actual transcript of this statement available online.
“Mr. Musk’s comments endanger the prospective judges with a false story that did not deliberately distort his Twitter message of August 7, 2018, the lawyers wrote. will have a negative impact on the judiciary. ”
Lawyers for Judge Edward M. Chen in San Francisco barred Mr. Musk would not comment on the matter until after the trial. Bw. Chen has given Elon Musk’s lawyers until Wednesday to respond.
Alex Spiro, attorney representing Mr. Musk, wrote in an email on Sunday that the plaintiffs’ attorneys were seeking substantial compensation. “Nothing will change the fact that Elon Musk was thinking of taking Tesla privately and he could do it,” he wrote. All that is left half a decade later are the lawyers for the plaintiffs trying to get money and others trying to prevent the truth from being known. All this at the expense of freedom of expression. “
Shareholders’ lawyers wrote that Mr. Chen had already decided that Mr. Musk was false and misleading, and “no wise juror can conclude otherwise.”
Following Elon Musk’s tweets in 2018, the U.S. Securities and Trade Commission (SEC) filed a lawsuit against him alleging breach of bail law. Mr Musk then accepted the fine and signed a court order. Part of the resolution states that Elon Musk “will not take any action or provide or permit the release of any public information which directly or indirectly denies any allegations contained in the complaint or creates the impression that the complaint is unfounded.”
Should Elon Musk violate the agreement, the SEC could ask the court to dismiss and reinstate the allegations of bail fraud, the agreement says.
Attorney Alex Spiro, on behalf of Elon Musk, has already asked the federal court in Manhattan to overturn the plan. He argues that the SEC is using an agreement with “almost unlimited resources” to reduce Mr. Musk. Court documents submitted by Mr. Spiro suggests that Elon Musk signed the agreement when Tesla was an immature company and the SEC’s action jeopardized its funding.