Elon Musk was found not liable in a class-action securities fraud trial that centered on the Tesla CEO’s now infamous “funding secured” tweet.
After less than two hours of deliberation, a jury announced the verdict in the trial that kicked off three weeks ago in San Francisco. Tesla shareholders who traded the company’s stock in the days after Musk tweeted that funding was “secured” to take Tesla private at a potential value of $420 per share sued the executive for billions of dollars in damages.
The outcome of the trial sent Tesla shares up about 1.5% in after-hour trading to $189.98.
The trial hinged largely on the language and intent of that tweet. The plaintiffs argued it led ordinary investors to lose money, and Musk’s lawyers argued the tweet was simultaneously true (he really did intend to take Tesla private) and a slip of the hand (“funding secured” was the wrong word choice).
This story is developing …
Elon Musk, Tesla found not liable in ‘funding secured’ tweet lawsuit by Kirsten Korosec originally published on TechCrunch