US Court Rules Against Elon Musk's Infamous 'Funding Secured' Tweet
- U.S. District Judge Edward Chen of San Francisco ruled that Elon Musk's 2018 tweets of secured funding to take Tesla, Inc (NASDAQ:TSLA) private were inaccurate and reckless, Reuters reports.
- The court added that "there was nothing concrete" about Saudi Arabia's sovereign wealth fund financing during that time.
- In 2018, Musk met with Saudi Arabia's Public Investment Fund representatives and discussed taking Tesla private.
- He did not discuss the details, such as the total amount of funding needed to take Tesla private or the price for Tesla stock.
- The decision marked a significant victory for investors, alleging that Musk inflated stock prices by making false and misleading statements, causing billions of damages.
- The judge refused to grant shareholders summary judgment on whether or not the allegedly false statements impacted Tesla's share prices.
- The latest ruling was in line with a complaint from the U.S. SEC, which prosecuted Musk for fraud charges for the tweets in 2018 that followed Musk's exit as Tesla Chair, paying fines and agreeing to have a lawyer approve some of his tweets before posting them.
- Price Action: TSLA shares traded higher by 1.77% at $814.20 in the premarket on the last check Wednesday.