Thursday, February 9, 2023

Trial begins against Elon Musk for alleged investor fraud

Fraud case against tycoon Elon Musk It began this Tuesday in San Francisco, in the western United States, with the selection of jurors who must decide whether Tesla and Twitter’s number one wrote a fraudulent message in 2018, as alleged by investors. was condemned.

The case dates back to August 2018, when Musk tweeted that he wanted to put the electric carmaker out of business. Tesla He had the financing to do so and from the stock market.

His comments sent the automaker’s stock swinging sharply for several days.

“The complainant confirms that those tweets were false and Artificially influenced Tesla’s stock price and other actions,” Judge Edward Chen said as he spoke to the jurors.

On Friday, the magistrate declined to transfer the case to Texas, the southern state where Musk has resided since moving Tesla from California.

His defense has argued the billionaire would not have a fair trial in San Francisco, where he bought Twitter in late October and has been widely criticized for his decisions on the social network.

The trial will eventually take place in that city and last three weeks. Kasturi is among the witnesses.

In a previous ruling on the matter, the judge held that the 2018 tweet could be considered “false and misleading”.

The SEC – the stock market policeman – also filed a lawsuit then, speculating that Musk did not present evidence of the existence of such financing.

The controlling body forced him to give up the chairmanship of the Tesla board and pay a fine of $20 million. In addition, your Tweets associated with this company must be approved by a competent attorney.

Kasturi has tried to reverse this decision without success.

Nation World News Desk
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