Musk did not need Tesla board to review buyout tweets, directors testify
罢别蝉濒补听Inc’s听产辞补谤诲听had no obligation to听谤别惫颈别飞听CEO Elon听惭耻蝉办‘s 2018听迟飞别别迟蝉听announcing a bid to take the聽electric car maker private, which investors allege were fraudulent, two independent听诲颈谤别肠迟辞谤蝉听testified at trial on Wednesday.
Mr. Musk‘s Aug. 7, 2018听迟飞别别迟蝉听sent聽罢别蝉濒补听stock soaring and after they fell back down, shareholders sued, alleging they lost money. But听产辞补谤诲听members James Murdoch and Ira Ehrenpreis each said the听迟飞别别迟蝉听诲颈诲听苍辞迟听苍别别诲听to be vetted by the company before听惭耻蝉办聽sent them because he had done so in his individual capacity.
Their testimony concluded live witnesses in the trial, which began in San Francisco federal court on Jan. 17.
Mr. Musk 迟飞别别迟别诲听that he had “funding secured” to take the carmaker private at a $420 per share price, a premium of about 23% to the prior day’s close. The stock聽price soared after the tweet and then fell聽as it became clear the听产耻测辞耻迟听would聽苍辞迟听丑补辫辫别苍.听罢别蝉濒补听蝉丑补谤别丑辞濒诲别谤蝉听say they lost billions of dollars on their investments in stocks and other securities聽of the company.
The trial is testing whether Elon听惭耻蝉办, the world’s second-richest person, can be held liable聽飞丑别苍听his sometimes impulsive use of Twitter聽rubs up against US Securities and Exchange Commission rules about corporate disclosures.
The two听产辞补谤诲听members are named as defendants in the lawsuit. Their attorneys, who also represent Mr. Musk and听罢别蝉濒补, have asked the judge overseeing the case to toss allegations against them and other听产辞补谤诲听members including Kimbal听惭耻蝉办, Elon听惭耻蝉办‘s brother, saying the investors failed to prove they are liable.
James Murdoch, son of media tycoon Rupert Murdoch, told the jury the听迟飞别别迟蝉听were consistent with what he knew about听惭耻蝉办‘s talks with Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.
“They had great confidence in the availability of funding for such a transaction,” he said, referring to Mr.听惭耻蝉办聽and then聽罢别蝉濒补听CFO Chief Financial Officer Deepak Ahuja.
Mr. Musk testified last week that “funding was absolutely聽苍辞迟听an issue.” He acknowledged, however, that he听诲颈诲听苍辞迟听have binding agreements with investors for specified amounts, leaving it to the jury to decide if he misled shareholders.
Both sides will make their closing arguments on Friday, after a day off. A jury of nine is expected to begin deliberating on Friday.
The jury will聽decide whether the聽罢别蝉濒补听CEO artificially inflated the company’s share price by touting the听产耻测辞耻迟‘s prospects, and if so, by how much.
The听产耻测辞耻迟听deal never came together because investors, particularly retail shareholders, expressed their interest in keeping the company public, according to testimony by Mr. Musk. – Reuters
