A federal judge in San Francisco dismissed a lawsuit in which Tesla shareholders accused Tesla and its CEO for misleading investors about the production progress of Tesla Model 3.
Tesla CEO Elon Musk and former Chief Financial Officers Deepak Ahuja and Jason Wheeler issued a series of false and misleading statements with respect to the company’s business, operational and compliance policies, violating various securities laws.
What the judge said:
According to Reuters, “U.S. District Judge Charles Breyer said that while shareholders claimed that Tesla fell short of its production goals, federal securities laws do not punish companies for failing to achieve their targets.”
“Plaintiffs are correct that defendants’ qualifications would not have been meaningful if defendants had known that it was impossible for Tesla to meet its stated production goals, not merely highly unlikely,” Breyer wrote. “The facts plaintiffs have put forth do not tend to establish that this was the case.”
The Judge has given time until September 28th to amend the complaint.
Wochos v Tesla Inc et al, U.S. District Court, Northern District of California, No. 17-05828.
Tesla shareholder Gregory Wochos, represented by Laurence M. Rosen of The Rosen Law Firm in Los Angeles, filed a complaint in the U.S. District Court for the Northern District of California on behalf of all Tesla investors.