As per a U.S. jury on Friday Tesla Inc (TSLA.O) CEO Elon Musk and his company were not accountable for misleading investors when Musk tweeted in 2018 that he had “funding secured” to take the electric car company private.
The jury came back with a unanimous verdict roughly two hours after beginning deliberations.
Plaintiffs had demanded billions in damages and the decision also had been perceived as important for Musk himself, who often takes to Twitter to air his views.
Although Musk was not present in court when the verdict was read, he soon tweeted that he was “deeply appreciative” of the jury’s decision
Shares of Tesla rose 1.6% in after-hours trading following the verdict.
“We are disappointed with the verdict and are considering the next steps.” Nicholas Porritt, a lawyer for the investors, said in a statement,
The U.S. anti-securities fraud law “has always been thought to be this great bulwark against misstatements and falsehoods,” he said. “This outcome makes you wonder if it is up to the job in modern markets,” he said, adding that Musk himself was likely to “double down” on his communication tactics after the verdict.
Tesla shareholders sued Musk misled them when he tweeted on Aug. 7, 2018, that he was pondering taking the company private at $420 per share, a premium of about 23% to the prior day’s close, and had “funding secured.”