Elon Musk’s infamous ‘Funding Secured’ tweet is upheld by a US court.

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Elon Musk’s infamous ‘Funding Secured’ tweet is upheld by a US court.

 

According to Reuters, Elon Musk’s 2018 tweets on arranging funding to take Tesla, Inc (NASDAQ: TSLA) private were misleading and reckless, according to US District Judge Edward Chen of San Francisco.

 

The court also stated that “nothing tangible” was known at the time concerning Saudi Arabia’s sovereign wealth fund financing.

 

Musk met with executives from Saudi Arabia’s Public Investment Fund in 2018 to discuss taking Tesla private.

 

He didn’t go into specifics, such as the total amount of financing required to take Tesla private or the current value of Tesla stock.

 

Read Also: Elon Musk becomes Twitter’s top shareholder after purchasing a $2.9 billion (9.2%) stake.

 

The decision marked a significant victory for investors, alleging that Musk inflated stock prices by making false and misleading statements, causing billions of damage.

 

The judge refused to grant shareholders summary judgment on whether or not the allegedly false statements impacted Tesla’s share prices.

 

The latest ruling was in line with a complaint from the U.S. SEC, which prosecuted Musk for fraud charges for the tweets in 2018 that followed Musk’s exit as Tesla Chair, paying fines and agreeing to have a lawyer approve some of his tweets before posting them.

 

TSLA shares traded higher by 1.77% at $814.20 in the premarket on the last check Wednesday.

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