In a court filing out late Friday, shareholders who are suing Tesla and CEO Elon Musk over alleged securities fraud said they won part of a critical ruling in their class-action lawsuit.
over alleged securities fraud said they won part of a critical ruling in their class-action lawsuit.
Tesla’s stock trading initially halted, then shares were highly volatile for weeks after the tweets. Muskthat he had been in discussions with Saudi Arabia’s sovereign wealth fund and felt confident that funding would come through at his proposed price. A deal never materialized. Damages from the shareholders’ class-action lawsuit could amount to billions of dollars that would be paid by Musk and Tesla to those who are members of the class.
This information was revealed in a request the shareholders’ lawyers made for a temporary restraining order against Musk to stop him from making further public remarks about aspects of this case, as he did during a widely viewed appearance at theThe request for the temporary restraining order alludes to an earlier ruling by Judge Chen that is currently under seal because it refers to evidence that Musk’s team regarded as confidential.
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