According to an earlier CNBC story, Elon Musk has requested the court presiding over a shareholder lawsuit against him to relocate the trial out of San Francisco due to his belief that the jury may be biased against him. On Friday, Musk asked the judge to move the trial out of the Bay Area to West Texas because of the “local negativity” surrounding Musk and his companies.
Musk’s now-famous tweet in 2018 in which he stated he had the “funding secured” to take Tesla private comes to the shareholder class action complaint accusing Musk of manipulating Tesla’s shares. In the weeks after the tweet, Tesla stock saw wild swings, leading to a $40 million punishment from the Securities and Exchange Commission.
CNBC reports that the next trial will address whether or not Musk should be held liable for the claimed damages caused by the drop in Tesla stock price following a tweet he sent in 2018.
“The recent local media coverage has created an environment that encourages the District’s jury pool to hold negative biases against Mr. Musk’s use of Twitter,” the filing reads. “Potential jurors that hold negative opinions about Mr. Musk’s use and relationship with Twitter generally as a result of this coverage will be unable to separate this baseline bias from the facts in this case and thus be unable to impartially evaluate Musk’s conduct.”
The filing blames “inflammatory” local media coverage and also claims that people who have been affected by Musk’s botched acquisition of Twitter, which entailed huge layoffs at the company’s San Francisco headquarters and other locations, “already created substantial bias.”
It further says that local officials actively “encourage” rallies against Musk and his San Francisco headquarters, adding fuel to the fire of the “prejudice” that will lead to a biased hearing. Musk and his attorneys have requested a postponement in the trial in the event the judge does not relocate it to Texas, where Tesla is headquartered, in order to allow “negative sentiments” around Musk to disperse.
Federal Judge Edward Chen, who’s in charge of this lawsuit, decided last year that Musk willfully made false comments about taking Tesla private on Twitter. Text conversations recently made public demonstrate Musk’s fury about the PIF’s lack of support, despite Musk’s continued assertions that he secured a deal with investors from the Kingdom of Saudi Arabia’s Public Investment Fund (PIF).
This trial was scheduled to begin on January 17th, and Musk has already issued a subpoena to PIF CEO Yasir al-Rumayyan. On January 13th, there will be a hearing about moving the trial.
CNBC reported previously that Elon Musk, concerned about potential prejudice on the part of a San Francisco jury in a shareholder case against him, has asked the presiding judge to move the trial out of the city. Due to “local animosity” towards Musk and his businesses in the Bay Area, Musk requested the trial be relocated to West Texas on Friday.
Please forward this post and encourage your friends and family to visit Smartnewszone.com for the newest news.