In accordance with the class-action lawsuit, Musk’s tweet on August 7, 2018, Am considering taking Tesla private at $420, resulted in financial losses for stockholders. Funds are in place.
soure: etautoAccording to several legal experts, Musk will lose, and the only issue left to be resolved is how much he would have to pay in damages. Elon will lose, and he will lose badly, according to law expert Robert Miller of the University of Iowa College of Law, who spoke to Ars Technica. We’re only debating the precise amount Musk will be required to pay and the proportion of inflation and deflation that can be attributed to fraud.Musk may have little chance of winning the case outright, but in order to get a sizeable compensation, the plaintiff needs to demonstrate that Musk’s dishonest comments actually caused investors’ losses. Investors that paid inflated prices for Tesla shares and then lost money selling them are suing for billions of dollars in damages.
Musk suggested a price in a tweet of $420, which was approximately 20% more than Tesla’s closing share price of $349.54 on August 2, 2018. Musk believed that 20% was a standard premium in going-private negotiations, the complaint claims.
Although the precise figure was $419.49, Musk increased the price to $420 per share because he thought his then-girlfriend Claire Elise Boucher, also known as Grimes, would find it humorous given the significance of the number to marijuana users.
District Judge Edward Chen already made a significant decision that makes it more difficult for Musk to win the case, even if a jury ultimately decides. In April 2022, Chen granted in part Littleton’s request for partial summary judgement, finding that Musk had made false claims willfully. She also stated that there was no genuine debate regarding the truth of the first three claims at issue and the recklessness with which Mr. Musk had made them.
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