San Francisco (Times Of Ocean)- Tesla (TSLA.O) investors lawsuit against their CEO Elon Musk for false tweets in 2018 indicating that financing had been secured to take the company private has been ruled false by a federal judge.
The court ruled that Musk’s 2018 tweets were “false and misleading,” according to the filing. The court found that Musk recklessly made the statements with knowledge of their falsity.
In their filing, submitted on Friday, the electric car maker’s investors asked US District Court Judge Edward Chen to block the celebrity entrepreneur from using his “public campaign to present a contradictory and false narrative” about his 2018 tweets.
Musk claimed on Thursday that funding had been secured to take Tesla private by 2018. U.S. securities regulators settled with him over false statements the agency found, imposing fines and agreeing to have a lawyer review some of his tweets before they were posted online.
The April 1 decision was not listed on the court’s docket.
In a May jury trial, the investors are seeking damages over the tweets.
The filing said Musk “has used his fame and notoriety to sway public opinion in his favor, engaging in a press battle after having been defeated in court.”
‘Musk’s latest remarks risk confusing potential jurors and prejudicing a jury decision on the damages Musk owes,’ it said.
Musk wants to nullify his settlement with the SEC, claiming that the agency is harassing him with investigations.
The lawyer for Musk and Tesla, Alex Spiro, reiterated on Saturday that Musk was considering taking Tesla private in 2018 and that he had funding for the move. He said, “All that’s left some half decade later is random plaintiffs’ lawyers trying to make a buck and others trying to suppress the truth, all in the name of free speech.”
The case is In re Tesla Inc Securities Litigation, US District Court, Northern District of California, No. 18-04865.