Elon Musk found not guilty in Tesla investors' lawsuit
A jury in a California state court found Ilon Musk not guilty at the suit of shareholders of the company Tesla he heads. 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, caused the company’s stock price to first spike and then plummet, which the victims said caused them to lose billions of dollars.
The plaintiffs sought compensation from Musk for financial damages they believe were 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 offered no substantial evidence for the allegations.
“Thank God the wisdom of the people prevailed,” Musk said on Twitter, commenting on the court’s decision.
The 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 of that year, Musk was ordered to pay $20 million and step down as Tesla’s chairman of the board, while retaining his position as the company’s CEO. The company itself was also ordered to pay $20 million, in addition, it appointed two independent directors.
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