Lawyers for Tesla and investors will have their first argument before a San Francisco court on January 18 (local time) in a lawsuit that determines whether the CEO’s 2018 Twitter post chief executive officer (CEO) Elon Musk whether Tesla has enough financial resources to privatize will hurt shareholders or not.
This is a rare class action involving the stock market. Billionaire Musk and his company are ignoring the usual standards of complaint settlement and creating drama for a trial in which Musk himself may have to testify.
Investors of TeslaGlen Littleton will trade the company’s shares on behalf of shareholders to claim “billions of dollars” after billionaire Musk posted his plan to privatize the company on Twitter in August 2018.
[Tỷ phú Elon Musk tiếp tục bán cổ phiếu của hãng xe điện Tesla]
A jury of nine will decide whether these Twitter posts artificially inflate Tesla’s stock price by understating the funding status of the deal, and if so, by how much. much.
The defendants, including current and former Tesla executives, said they would argue that stock price The spike was in response to Mr. Musk saying he was considering privatizing the company, which they believe to be true, rather than his assertion on the funding issue.
After the first session, shareholders can start calling witnesses. According to court documents, Musk may appear in court to testify, along with former board member Larry Ellison (co-founder of Oracle Corp) and current board member James Murdoch, son. son of Fox Corp President Rupert Murdoch.
Judge Edward Chen, who will oversee the trial, ruled that Musk’s claims about the status of the deal were untrue and that the CEO made those claims recklessly. The privatization of Tesla did not happen.
While shareholders sue hundreds of companies and executives for alleged securities fraud each year, very few such cases go to trial. The vast majority were either rejected by the court or settled.
Thuy (VNA/Vietnam+)