Arguments began Wednesday in a lawsuit against Tesla against shareholders . Accused of misleading the company with a tweet from Elon . Musk that had “secured” funding to take the electric car company private.
A lawyer for Tesla investors told a nine-member jury that Musk “lied” when he sent the Aug. 7, 2018 tweet. Costing investors money while its share price fluctuated . As Wall Street digested the information. , the company became traded.
“Millions of dollars were lost after . His lies came to light,” said attorney Nicholas Porritt. Who represents the investors.
A lawyer for Musk argued that the billionaire used the “wrong word” and that . Musk was “serious” about taking the company private in . 2018 with the help of Saudi Arabia’s Public Investment Fund. But faced opposition from shareholders.
Lead shareholder plaintiff Glenn . Littleton is seeking billions of dollars in damages for the 2018 tweet. Shares of Tesla stock began a steady decline that continued into the next year.
The fallout led to an investigation by federal regulators. Musk and Tesla were each fined $20 million, and Musk was forced to step down as chairman of Tesla. He agreed to require lawyers to review his statements about . Tesla before publishing them on social media.
Last May, Judge Edward Chen, who is overseeing the trial, ruled in summary judgment against. Littleton and the other plaintiffs that Musk’s comments about. The tech-private deal were false and reckless. A jury in . Northern California will now determine whether Musk made false statements. How the tweet affected the stock price and what damages were incurred.
Everything is set up for the plaintiffs to win here,” Minor Myers, who teaches corporate . law at the University of Connecticut, told Reuters, adding that the ruling in. May means shareholders are “starting with a base run.”
According to data from law firm Wolf Popper LLP cited by Reuters.
If shareholders prevail and win compensation, it will likely take years to . Collect because of the appeals process, experts said.
It is unclear whether Musk himself will testify. Other Tesla-connected individuals, including Larry Ellison, former board member and co-founder of. Oracle Corporation; And James Murdoch, current board. Member and son of media mogul Rupert Murdoch, may testify.