Global News

Breaking news & current latest Canadian news headlines; national weather forecasts & predictions, local news videos, money and financial news; sports stats and scores.

https://globalnews.ca/

Elon Musk, Tesla face trial in shareholder case over 2018 tweets.

Click to play video: 'Elon Musk offers to buy Twitter for US$41 billion'

WATCH: Elon Musk offers to buy Twitter – Apr 14, 2022

Elon Musk and Tesla Inc. are set to go to trial in San Francisco on Tuesday in a case where the company’s shareholders claim they were defrauded by Musk’s 2018 statement that funding was “secured” to take the electric car maker private.

The lawsuit seeks damages for shareholders who bought or sold Tesla stock in the days after Musk’s tweets on Aug. 7, 2018. The company’s shares shot higher and then fell again after Aug. 17, 2018, when the New York Times reported that funding for the take-private bid was “far from secure.”

The shareholders have not specified the damages, but said Musk’s tweets cost investors “billions.”

The defendants, who also include seven current and former Tesla directors, have denied wrongdoing.

Opening arguments could get under way later on Tuesday, after the jury is selected. Potential panelists were asked ahead of time about their opinions of Musk and whether they own a Tesla vehicle.

Musk had asked U.S. District Court Judge Edward Chen to move the case to Texas, arguing too many potential jurors are biased against him because of negative local media coverage of layoffs at Twitter, which he took over in October.

The judge, who is overseeing the case, denied that bid last week.

Investors sued in August 2018, shortly after Musk posted on Twitter that he was considering taking Tesla private at US$420 per share. “Funding secured,” he said.

In another tweet the same day, he wrote, “Investor support is confirmed,” adding, “only reason why this is not certain is that it’s contingent on a shareholder vote.”

Chen has ruled that those statements were untrue and reckless. The jury will decide if Musk’s words mattered to investors, whether he acted knowingly and whether to award damages and in what amount.

The defendants have said in court papers that they will argue that Musk had good reason to believe funding for the deal was secured.

The billionaire had met Yasir Al-Rumayyan, the managing director of Saudi Arabia’s sovereign wealth fund, on multiple occasions, according to the court filing, which also said Al-Rumayyan had urged Musk to take Tesla private and offered up to US$60 billion in backing.

Musk may take the stand in the case, according to court documents, along with Oracle Corp. co-founder Larry Ellison and James Murdoch, son of Fox Corp. Chairman Rupert Murdoch.

The trial is expected to last around three weeks.

Elon Muskelon musk twitterelon musk teslaelon musk newsElon Musk todayElon Musk updatetesla elon muskElon Musk updatestesla newsTelsa todayTesla updateTesla updates

Journalistic standards Report an error

© 2023 Reuters

Особистий тайм-менеджмент або як управляти своїм часом.
Останні новини

Portugal to send Leopard 2 tanks to Ukraine – PM

Portugal will send Leopard 2 tanks to Ukraine, Prime Minister António Costa said, without specifying how many will be shipped, DW reports. He added that Portugal is in talks with Germany to obtain parts needed for the repair of a number of in...

Euromaidan Press

Billions in taxpayer money stolen

Billions in taxpayer money stolen

A House committee is now investigating how up to $100 billion of COVID relief funds landed in the wrong hands. ABC News’ Andrea Fujii reports.

Ukrainian Security Services capture criminal gang that extorted Dnipro residents for money.

Ukrainian Security Services capture criminal gang that extorted Dnipro residents for money.

This footage shows Ukrainian Security Services of the SBU (СБУ) 'neutralising' a criminal gang that operated around Dnipro. In a statement the SBU said: "As a result of the special operation in Dnipro, a criminal group that terrorized and tried to...

Angry scenes outside Cardinal Pell's funeral as mourners hear him called a victim.

Angry scenes outside Cardinal Pell's funeral as mourners hear him called a victim.

Mourners at the Sydney funeral for Australian Cardinal George Pell, who was once the most senior Catholic convicted of sex abuse, remembered him as a victim of a campaign to punish him regardless of his guilt. Meanwhile, a few hundred protesters y...

Democrats 'saw their shadow' at border hearing, Republican says.

Democrats 'saw their shadow' at border hearing, Republican says.

Rep. Nathaniel Moran, R- Texas, responds to congressional Democrats' border security claims amid ongoing concerns over fentanyl deaths and a surge of migrant encounters. #FoxNews Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Cha...

LIVE: Latest News, Breaking Stories and Analysis on February 2 - CBS News.

LIVE: Latest News, Breaking Stories and Analysis on February 2 - CBS News.

An ice storm has killed at least eight people in Texas and caused hundreds of thousands of power outages across the South, the FBI is investigating Rep. George Santos' alleged role in purporting to raise funds for a veteran's dying dog through a p...

Live: Alex Murdaugh double-murder trial continues

Live: Alex Murdaugh double-murder trial continues

GRAPHIC CONTENT WARNING: Witnesses present evidence against Alex Murdaugh on the fifth day of the double-murder trial. #FoxNews Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-...