Summary
- U.S. appeals court upheld jury decision clearing Elon Musk and Tesla of liability over 2018 tweet
- Lawsuit filed by TSLA shareholders led by Glen Littleton accusing Musk of misleading investors
- Littleton’s legal team appealed the decision, but the appeal was rejected by 9th U.S. Circuit Court of Appeals
- Court acknowledged tweet was reckless but didn’t need consideration for scienter element
- Musk and Tesla welcomed the court’s decision, Littleton’s legal team has not commented
Article
In a legal victory for Elon Musk and Tesla, a U.S. appeals court upheld a jury’s decision that cleared them of liability over Musk’s 2018 “funding secured” tweet. The tweet caused significant volatility in Tesla stock and resulted in a combined fine of $40 billion for Musk and the company. The lawsuit was filed by TSLA shareholders, claiming that the tweet was misleading and caused financial losses. The jury ultimately sided with Musk and Tesla in 2023.
The plaintiffs in the case, led by investor Glen Littleton, decided to appeal the jury’s decision, arguing that the judge’s instructions were flawed and that the jury had not been properly guided. The appeal was rejected by the San Francisco-based 9th U.S. Circuit Court of Appeals. The court acknowledged that Musk’s tweet may have been reckless, but the question of whether he acted knowingly was relevant for apportioning damages between the defendants in the case.
The court’s decision stated that while the district court found that Musk had tweeted recklessly, the jury did not need to consider knowledge for the scienter element of Littleton’s claim. However, knowledge was implicated in the apportionment of damages, and the jury was instructed to decide whether Musk acted knowingly. Elon Musk and Tesla’s lawyer, Ellyde Thompson, welcomed the court’s decision, while Littleton’s legal team did not issue a comment on the matter.
For news tips, readers can contact Teslarati through email. The company also has an aftermarket shop for Tesla Cybertruck accessories. One of their products is an affordable Off-Road LED Lightbar for the Cybertruck. Despite the legal battle over the “funding secured” tweet, Elon Musk and Tesla have been cleared of liability, marking a significant victory for the CEO and the company. The court’s decision upheld the jury’s verdict and rejected the plaintiff’s appeal based on the instructions given to the jury in the case.
Read the full article here
