Musk Was Charged With Fraud After Tweeting Stock Manipulation
On Tuesday, Elon Musk, CEO of Tesla and possibly one of the most talked-about people of 2022. It is scheduled to stand trial for allegedly manipulating stocks in a tweet in August 2018. beyond California.
Musk said in a tweet in 2018 that he had enough money to take Tesla private. It caused the stock price of the company to crash. The drastic job cuts that Musk ordered on Twitter. The San Francisco company that he acquired in October has angered many Tesla shareholders in Northern California. It argued that moving to shareholders would be unfair. Shareholders quickly filed a lawsuit against Musk. It accused him of spending billions of dollars on his tweet that funds were “secured” to buy out the company’s shareholders.
Edward Chen
A court spokesperson stated that Judge Edward Chen rejected moving the trial to Texas on Friday. Musk relocated Tesla’s headquarters to this southern state, where jury selection is scheduled to begin on Tuesday. The shareholders’ court filing states:
Defense attorneys argued that the multibillionaire would be denied a fair trial in San Francisco. He bought Twitter in late October and has been widely criticized for his decisions since taking over the social media company. “What they refer to as ‘biased’ coverage is, in fact, factual reporting about his management of Twitter, Inc. It has no bearing on the jury’s ability to render a fair verdict,” the statement read. In the filing, Musk’s lawyers stated:
Mr. Musk
“The local media, in a deviation from how they typically cover these stories. It has blamed Mr. Musk personally for the reductions and even accused him of violating the law,” according to reports. “Videos of an audience booing Musk during a surprise appearance at a Dave Chappelle show in San Francisco in December were circulated online. 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.” In the video, the comedian said, “It seems like some of the people you fired are in the audience.”
Musk later acknowledged that there were “a lot of boos” and added the following now-deleted tweet:
“It’s almost as if I’ve offended the irrational leftists in SF… but ,” I said.
Musk was fined $20 million and ordered to resign as chairman of Tesla’s board by the Securities and Exchange Commission of the United States. Musk has been accused by shareholders of defrauding investors of billions of dollars by making false and misleading statements to artificially increase stock prices. In August 2018, Musk posted a tweet stating that he had “secured the funds” to take Tesla private, which sparked volatile stock, bond, and option trading for ten days.
Musk is not alleged to have materially misled investors, according to the defendants, which include Tesla and its previous board of directors. According to court documents, Yasir Al-Rumayyan urged Musk to take Tesla private after meeting with the CEO of a Saudi sovereign wealth fund on multiple occasions. said it had offered assistance worth up to $60 billion.
