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"U.S. District Judge Edward Chen ruled on Wednesday that shareholders could try to prove Musk intended to defraud them with his Aug. 7, 2018 tweet and follow-up
by radium3d 7y ago
"U.S. District Judge Edward Chen ruled on Wednesday that shareholders could try to prove Musk intended to defraud them with his Aug. 7, 2018 tweet and follow-up messages about plans for his Palo Alto, California-based company."
Placing my bet that he did not >intend< to defraud them. Going to cost them a pretty penny to try to prove something that didn't happen.
- gamblor956 7y agoThis is a civil suit, they only need to prove that it was more likely than not that Musk intended to defraud investors. Given that Musk's salary is based on the value of the stock, and that Tesla needed the stock to increase in value to avoid financial triggers, there is already sufficient pro forma evidence to satisfy the intent prong. Unlike in criminal court, the true burden will be on Tesla/Musk to show that they did not intended to defraud investors. Given Musk's history of making misrepresentations, this will be a difficult task and it is very likely they will settle out of court instead of take this to trial.