Big setback for Elon Musk! CEO's go-private tweet ruled false by judge, Tesla investors say
Tesla Inc. shareholders suing over Elon Musk’s 2018 tweet about taking the company private say they won a key ruling in the run-up to a fraud trial with billions of dollars in damages at stake.
The investors said a federal judge agreed with them that “no reasonable jury could find Musk’s tweets on August 7, 2018 accurate or not misleading,” according to a court filing late Friday. The filing describes an April 1 order by the judge that isn’t listed on the docket.
Alex Spiro, a lawyer for Musk and Tesla, said “nothing will ever change the truth which is that Elon Musk was considering taking Tesla private and could have.”
“All that’s left some half decade later is random plaintiffs’ lawyers trying to make a buck and others trying to block that truth from coming to light all to the detriment of free speech,” he said Saturday.
The ruling -- if not appealed -- will put the electric-car maker at a big disadvantage in a San Francisco jury trial set for late May because Tesla won’t be allowed to argue the controversial Twitter post was truthful. It will allow investors to focus mainly on connecting Musk’s statement to their stock market losses.
The decision is also a blow to the credibility of the world’s richest person as he continues to wage legal battles that other chief executives would avoid or settle. Adding to the spectacle, Musk is waging a hostile bid to take control of Twitter Inc. on a pledge to make the platform a bastion of free speech.
Musk told a New York federal judge in early March he “would never lie to shareholders.” He’s asking that judge to free him from social media restrictions he agreed to after the Securities & Exchange Commission sued him for fraud over the 2018 tweets.
In San Francisco, the shareholders suing
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