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A federal judge ruled Wednesday he will not impose a “gag order” on Elon Musk stopping him to talk about a lawsuit regarding his tweets on taking Tesla Inc (NYSE: TSLA) private.
U.S. District Judge Edward Chen in San Francisco said he found no proof that letting Musk talk publicly posed a "clear and present danger" or "serious and imminent threat" to a trial scheduled January 2023.
Tesla shareholders had sued Musk for tweeting in 2018 that he had "funding secured" to potentially take the electric-vehicle company private. Shareholders incurred losses after Musk’s tweet due to volatility in Tesla's shares.
Musk stepped down as Tesla’s chairman then and also paid $20 million civil fines.
Chen confirmed that Musk’s 2018 tweets about having the money to make Tesla private at $420 per share were false, and made with sufficient knowledge they were false.
At the TED conference in Vancouver in April, Musk said that he had the funding secured to take Tesla private in 2018, but the U.S. Securities and Exchange Commission sued him over the tweets.
Musk called the SEC a profane name and said he only settled the case because bankers told him they would stop providing capital if he didn’t.
Picture Credits: Reuters
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