Stock Groups

Don’t censor me in Tesla shareholder lawsuit -Breaking

[ad_1]

© Reuters. FILE PHOTO – Tesla CEO Elon Musk gesticulates as he tours the Gruenheide construction site near Berlin on August 13, 2021. Patrick Pleul/Pool via Reuters

Jonathan Stempel

(Reuters) – Elon Musk asked a Federal Judge Wednesday not to stop him publically discussing a lawsuit against Tesla Inc (NASDAQ:) Inc shareholders. Musk tweeted in 2018 that he was considering taking Tesla private.

Musk and Tesla filed a document with the San Francisco federal court stating that the shareholders’ demand for a broad “gag order”, which would have been too restrictive, could not be reconciled to the U.S. Constitution guarantee of freedom speech.

The proposed restrictions would also prevent Musk from speaking with Tesla shareholders to discuss his plan to purchase. Twitter Inc (NYSE:), and trying end his consent order with the U.S Securities and Exchange Commission. The U.S Securities and Exchange Commission requires Tesla lawyers to review some of his tweets.

Lawyers for Tesla and Musk stated that the shareholders’ request “evokes an entirely incompatible level of censorship with our justice system, and basic tenetss of freedom speech.”

The lawyers representing the shareholders didn’t immediately reply to inquiries for comment.

Tesla stock volatility led to the lawsuit. Musk posted on August 7, 2018, “funding secured” for Tesla to possibly take Tesla private at $420 per Share.

A temporary restraining order was requested by shareholders on April 15. This would prevent Musk from discussing publicly his interpretation and opinions of the case. After U.S. District Judge Edward Chen agreed that their tweet was false and misleading, they requested a temporary restraining order.

This also happened one day after Musk, who is the richest man in the world according to Forbes, said that Tesla was privately funded at the moment he tweets. But the SEC sued Musk for fraud.

Chen’s April 1 order is not public.

This would stop Musk from making false claims about his tweet and allow shareholders to focus on the fact that Tesla stock suffered losses.

Musk has stated that the tweet was accurate and that he will never lie to shareholders. Musk has offered to pay $54.20 for Twitter shares.

In re Tesla Inc Securities Litigation. U.S. District Court Northern District of California. 18-04865.

[ad_2]