fbpx
Vertiv Introduces New Single-Phase Uninterruptible Power Supply for Distributed Information Technology (IT) Networks and Edge Computing Applications in Europe, Middle East, and Africa (EMEA)Read more Students from JA Zimbabwe Win 2023 De La Vega Global Entrepreneurship AwardRead more Top International Prospects to Travel to Salt Lake City for Seventh Annual Basketball Without Borders Global CampRead more Rise of the Robots as Saudi Arabia Underscores Global Data and Artificial Intelligence (AI) Aspirations with DeepFest Debut at LEAP23Read more Somalia: ‘I sold the last three goats, they were likely to die’Read more Merck Foundation and African First Ladies marking World Cancer Day 2023 through 110 scholarships of Oncology Fellowships in 25 countriesRead more Supporting women leaders and aspirants to unleash their potentialRead more Fake medicines kill almost 500,000 sub-Saharan Africans a year: United Nations Office on Drugs and Crime (UNODC) reportRead more Climate crisis and migration: Greta Thunberg supports International Organization for Migration (IOM) over ‘life and death’ issueRead more United Nations (UN) Convenes Lake Chad Countries, Amid Growing Regional CrisisRead more

US fraud trial begins over Elon Musk’s 2018 Tesla tweets

show caption
Tesla chief Elon Musk and his brother, Kimbel, are among witnesses who could be called to testify at a fraud trial over whether the controversial billionaire sent the company's share price spinning with a false tweet about taking the company private./AFP
Print Friendly and PDF

Jan 18, 2023 - 03:44 AM

SAN FRANCISCO — Jury selection began on Tuesday in a California courtroom over whether Elon Musk committed fraud with a pair of 2018 tweets saying he was poised to take Tesla private.

The tweets sent the Tesla share price on a rollercoaster ride and Musk is being sued by shareholders who say the tycoon acted recklessly and cost them billions of dollars.

The trial is expected to last three weeks and comes at a sensitive time for Musk, who will likely be called to testify.

Tesla’s share price has plummeted over the past year with investors upset over Musk’s buyout of Twitter, the social media platform where the billionaire appears to be devoting much of his attention.

Shareholders filed suit against Musk in 2018 for allegedly costing them billions of dollars with a tweet that said “funding secured” for a project to buy out the publicly-traded electric automaker.

In a second tweet, Musk added that “investor support is confirmed,” and that the deal was only awaiting a vote by shareholders.

“The plaintiff alleges that these tweets were materially false and artificially affected the price of Tesla stock and other securities after they were made,” US District Court Judge Edward Chen said while summarizing the case for potential jurors.

Musk’s short tweets in 2018 have already been scrutinized by US authorities.

The country’s stock market regulator, the Securities and Exchange Commission, ordered that Musk step down as chairman of Tesla’s board and that the company and Musk each pay a fine of $20 million.

Musk denies he was being deceitful and his lawyers are expected to call on witnesses to vouch for his plans at the time, including testimony from Musk’s friend and fellow billionaire Larry Ellison.

Picking jurors began after Chen last week refused a request by Musk to transfer the proceedings to Texas, the southern state where Musk has moved Tesla’s headquarters.

Twitter ban request 

Lawyers representing Musk argued that he would be denied a fair trial in San Francisco, where Twitter is based.

On Tuesday, the court reviewed the responses from dozens of potential jurors to a questionnaire, which included their opinions about Musk.

One potential juror acknowledged that he would probably not be impartial. “There’s also the billionaire aspect. I’m not a big fan of those people,” he said.

Alex Spiro, Musk’s lawyer, asked those up for jury selection to remain “open-minded” even if they will first hear the version of the accusers.

He also asked the court to not bring up “recent events at Twitter.”

After taking over the social media site in October, Musk fired more than half of its 7,500 employees and upended its content moderation policies, including unblocking the account of former US president Donald Trump.

“For the last several months, the local media have saturated this district with biased and negative stories about Mr. Musk that have fostered… highly prejudicial biases in the jury pool,” the CEO’s lawyers argued in a filing.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.