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HomeBusinessElon Musk found not guilty of fraud jury claims.

Elon Musk found not guilty of fraud jury claims.

The Tesla Inc. CEO was exonerated on Friday by a federal jury in San Francisco following charges by investors that he had misled them when he tweeted, in 2012, that he was considering taking the business private and had “money secured” to make the deal happen.

The result was another win for the billionaire’s go-to attorney, Alex Spiro, in a contentious trial that many high-profile business leaders would have avoided by striking a settlement outside of court.

Once again demonstrating his legal toughness, Elon Musk.

The Tesla Inc. CEO was exonerated on Friday by a federal jury in San Francisco following charges by investors that he had misled them when he tweeted, in 2012, that he was considering taking the business private and had “money secured” to make the deal happen.

The result was another win for the billionaire’s go-to attorney, Alex Spiro, in a contentious trial that many high-profile business leaders would have avoided by striking a settlement outside of court.

In August 2018, Tesla shareholders accused Mr. Musk of deceiving them through his social media posts and launched a class-action lawsuit on their behalf.

The planned $72 billion (£60 billion) takeover never happened.

Elon Musk
Elon Musk departs court in San Francisco, California, US

According to BBC, Mr. Musk had been found at fault by the San Francisco jury, he may have been forced to pay billions of dollars in damages.

On Friday afternoon, it took the nine jurors less than two hours to reach a verdict.

Mr. Musk, who had said he couldn’t obtain a fair trial in San Francisco and wanted the trial transferred to Texas, where Tesla is based, applauded the verdict.

He tweeted on Twitter, a social media site he acquired for $44 billion in October:”

Thank goodness, the wisdom of the people has prevailed!

“I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case.”

The conclusion of the three-week trial, which included Musk as the key witness, demonstrates that the businessman formerly known as “Teflon” Elon for his propensity to emerge unhurt from legal snares is still on a roll.

For the stockholders who hoped to recover trading losses from changes in Tesla shares after Musk posted the remarks, the outcome is a painful loss. About two weeks after his initial tweets, Musk gave up on the take-private proposal.

A particularly painful vindication for Musk comes after the US Securities and Exchange Commission sued him and Tesla as a result of his tweets from August 2018 and after he grudgingly agreed to accept limitations on his social media posting.

For Musk’s Twitter followers who support his pledges to promote free expression on the social media network he purchased in October for $44 billion, the win will be reason for celebration.

Elon Musk
Elon Musk departs court in San Francisco, California, US, on Feb. 3.Photographer: Benjamin Fanjoy/Bloomberg

Nicholas Porritt, a lawyer for the Tesla shareholders, said: “Our society is based on rules. We need rules to save us from anarchy. Rules should apply to Elon Musk like everyone else.”

Mr Musk’s attorney, Alex Spiro, said: “Just because it’s a bad tweet doesn’t make it a fraud.”

After the verdict, Mr Porritt said: “We are disappointed with the verdict and are considering next steps.”

Once again demonstrating his legal toughness, Elon Musk.

Also Read: Barclays leaves the continent of Africa with a whopping $611.84 million

Sources: BBC & Bloomberg

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