Court denies Elon Musk’s request to move Tesla’s shareholder process out of San Francisco

A federal judge has rejected Elon Musk’s request to move his upcoming trial against a group of Tesla shareholders to Texas Bloomberg (through The edge). On Jan. 7, less than two weeks before the trial was due to begin on Jan. 17, Musk’s legal team asked to move the proceedings out of California, claiming that “a significant portion” of the potential jury pool in San Francisco is likely to be biased. would have. against the billionaire, partly because of the ongoing layoffs at Twitter.

The upcoming civil suit stems from a class action lawsuit related to “false and misleading” statements Musk made in 2018 when he said he was considering taking Tesla private at $420 per share. musks”financing assuredtweet caught the attention of the U.S. Securities and Exchange Commission, which eventually led to a $40 million settlement.

The shareholders involved in the lawsuit allege that Musk’s tweet impacted Tesla’s stock price. They are asking the court to order Musk to stop his “public campaign to present a contradictory and false narrative” of the episode. They say that he should also be responsible for possible damage. The group won an early victory last spring when District Judge Edward Chen concluded that Musk “recklessly made the statements with knowledge of their falsity.”

Of the approximately 200 candidates the court is considering for the jury, 82 percent said they had an unfavorable opinion of Musk in a pre-trial questionnaire. Ahead of the recent hearing, Alex Spiro, Musk’s attorney, said the paper showed “not only that a large majority of potential jurors harbor ill will toward Musk. but that they are not afraid to declare it proudly and vividly to the court.” However, Judge Chen did not believe Spiro’s argument. Referring to the recently concluded Theranos trial, Chen said a fellow judge at a nearby courthouse was able to assemble an “unbiased” jury to decide whether Elizabeth Holmes was guilty of criminal charges. He also rejected the idea of ​​moving the case to Texas, noting that Tesla’s headquarters were in California when Tesla shareholders sued Musk.

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