SAN FRANCISCO – This was stated by the court Elon MuskTweets of 2018, for which funding was provided Tesla Inc. the private was vague and careless, saying there was “nothing specific” about funding from the Saudi sovereign wealth fund at the time.
The decision by U.S. District Judge Edward Chen of San Francisco is a major victory for investors who claim Musk has inflated stock prices by making false and misleading statements, inflicting billions of losses.
In 2018, Musk met with representatives of the Saudi Public Investment Fund and discussed whether to make Tesla private, but evidence shows that “there was nothing specific in funding from the PIF,” the judge wrote.
“Most likely, the discussion between Tesla and PIF was obvious at a previous stage.
“No reasonable jury could find that Mr. Musk did not act recklessly, given his clear knowledge of the discussions,” he said.
He said details such as the total amount of funding needed to take Tesla into private hands, or the price to pay for Tesla shares, were not discussed.
The brief decision, made on April 1, was sealed more than a month before it was published on Tuesday. The word of the decree leaked a few weeks ago.
“This is extremely important,” shareholder attorney Nicholas Porit, a partner at Levi & Korsinsky LLP, told Reuters.