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Jury: Musk's 2018 Tesla tweets didn't deceive investors
A jury on Friday decided Elon Musk didn’t defraud investors with his 2018 tweets about electric automaker Tesla in a proposed deal that quickly unraveled and raised questions about whether the billionaire had misled investors.
The nine-member jury reached its verdict after less that two hours of deliberation following a three-week trial. It represents a major vindication for Musk, who spent about eight hours on the witness stand defending his motives for the August 2018 tweets at the center of the trial.
Musk, 51, wasn’t on hand for the brief reading of the verdict but he made a surprise appearance earlier Friday for closing arguments that drew starkly different portraits of him.
Not long after the verdict came down, Musk took to Twitter — the bully pulpit he now owns — to celebrate.
“Thank goodness, the wisdom of the people has prevailed!” Musk tweeted.
Musk’s decision to break away from his other responsibilities to sit in on the closing arguments even though he didn’t have to be there may have had an impact on the jurors, said Michael Freedman, a former federal prosecutor who is now in private practice working for a law firm that has represented celebrities and business executives.“It shows he has a presence,” Freedman said.
Nicholas Porritt, an attorney who represented aggrieved Tesla investors, said he was disappointed after urging the jurors in his closing arguments to rebuke Musk for reckless behavior that threatened to create “anarchy.”
“I don’t think this is the kind of conduct we expect from a large public company,” a downcast Porritt said after discussing the verdict with a few jurors who gathered to talk to him. “People can draw their own conclusion on whether they think it’s OK or not.”
During their discussion with Porritt, the jurors told them they found Musk’s testimony that he believed he had lined up the money from Saudi Arabia’s Public Investment Fund without a written commitment to be credible. They also expressed doubt about whether Musk’s tweeting was the sole reason for the swings in Tesla’s stock price during a 10-day period in August 2018 covered in the case.The trial pitted Tesla investors represented in a class-action lawsuit against Musk, who is CEO of both the electric automaker and the Twitter service he bought for $44 billion a few months ago.
Shortly before boarding his private jet on Aug. 7, 2018, Musk tweeted that he had the financing to take Tesla private, even though it turned out he hadn’t gotten an iron-clad commitment for a deal that would have cost $20 billion to $70 billion to pull off. A few hours later, Musk sent another tweet indicating that the deal was imminent.
Musk’s integrity was at stake at the trial as well part of a fortune that has established him as one of the world’s richest people. He could have been saddled with a bill for billions of dollars in damages had the jury found him liable for the 2018 tweets that had already been deemed falsehoods by the judge presiding over the trial.That determination, made last year by U.S. District Judge Edward Chen, left the jury to decide whether Musk had been reckless with his tweeting and acted in a way that hurt Tesla shareholders.
“It may have not been that difficult for the jury,” Freedman said, “because it sort of became like an up-or-down vote.”
Earlier Friday, Musk sat stoically in court during the trial’s closing arguments while he was both vilified as a rich and reckless narcissist and hailed as a visionary looking out for the “little guy.”
Over the course of a one-hour presentation, Porritt had implored the jurors to rebuke Musk for his “loose relationship with the truth.”
“Our society is based on rules,” Porritt said. “We need rules to save us from anarchy. Rules should apply to Elon Musk like everyone else.”
Alex Spiro, Musk’s attorney, conceded the 2018 tweets were “technically inaccurate.” But he told the jurors, “Just because it’s a bad tweet doesn’t make it a fraud.”
During roughly eight hours on the stand earlier in the trial, Musk insisted he believed he had lined up the funds from Saudi Arabia’s Public Investment Fund to take Tesla private after eight years as a publicly held company. He defended his initial August 2018 tweet as well-intentioned and aimed at ensuring all Tesla investors knew the automaker might be on its way to ending its run as a publicly held company.“I had no ill motive,” Musk testified. “My intent was to do the right thing for all shareholders.”
Spiro echoed that theme in his closing argument.
“He was trying to include the retail shareholder, the mom and pop, the little guy, and not seize more power for himself,” Spiro said.
Porritt, meanwhile, scoffed at the notion that Musk could have concluded he had a firm commitment after a 45-minute meeting at a Tesla factory on July 31, 2018, with Yasir al-Rumayyan, governor of Saudi Arabia’s wealth fund, given there was no written documentation.
In his 90 minute presentation, Spiro emphasized Musk’s track record helping to start and run a list of companies that include digital payment pioneer PayPal and rocket ship maker SpaceX, in addition to Tesla. The automaker based in Austin, Texas, is now worth nearly $600 billion, despite a steep decline in its stock price last year amid concerns that Musk’s purchase of Twitter would distract him from Tesla.
Recalling Musk’s roots as a South African immigrant who came to Silicon Valley to create revolutionary tech companies, Spiro described his client “as the kind of person who believes the impossible is possible.”
1 year ago
Tweets with racial slurs soar since Musk takeover
Instances of racial slurs have soared on Twitter since Elon Musk purchased the influential platform, despite assurances from the platform that it had reduced hateful activity, a digital civil rights group reported Thursday.
Researchers at the Center for Countering Digital Hate found that the number of tweets containing one of several different racial slurs soared in the week after Musk bought Twitter.
A racial epithet used to attack Black people was found more than 26,000 times, three times the average for 2022. Use of a slur that targets trans people increased 53%, while instances of an offensive term for homosexual men went up 39% over the yearly average.
Examples of offensive terms used to target Jews and Hispanics also increased.
Read more: Twitter to add gray “official” label to some high-profile accounts
All told, the researchers looked at nearly 80,000 English-language tweets and retweets from around the world that contained one of the offensive terms they searched for.
“The figures show that despite claims from Twitter’s Head of Trust and Safety, Yoel Roth, that the platform had succeeded in reducing the number of times hate speech was being seen on Twitter’s search and trending page, the actual volume of hateful tweets has spiked,” according to the analysis from the center, a nonprofit with offices in the U.S. and United Kingdom.
Roth resigned Thursday, joining the large number of Twitter employees who have either resigned from Twitter or been laid off since Musk took control.
A day before, Roth acknowledged the recent increase in hate speech on the site but said the platform had made significant progress in bringing the numbers down.
“We’ve put a stop to the spike in hateful conduct, but that the level of hateful activity on the service is now about 95% lower than it was before the acquisition,” Roth said in remarks broadcast live on Twitter. “Changes that we’ve made and the proactive enforcement that we carried out are making Twitter safer relative to where it was before.”
Read more: Elon Musk says will ban impersonators on Twitter
An executive confirmed Roth’s resignation to coworkers on an internal messaging board seen by The Associated Press on Thursday.
On Oct. 31, Twitter announced that 1,500 accounts had been removed for posting hate speech. The company also said it had greatly reduced the visibility of posts containing slurs, making them harder to find on the platform.
“We have actually seen hateful speech at times this week decline (asterisk)below(asterisk) our prior norms, contrary to what you may read in the press,” Musk tweeted last week.
Musk has described himself as a free speech absolutist, and he is widely expected to revamp Twitter's content moderation policies. While he said no changes have been made so far, Musk has made significant layoffs at the company, raising questions about its ability to police misinformation and hate speech before Tuesday's midterm election.
It may take some time to accurately assess the platform's performance in the election and to determine whether Twitter has adopted a different strategy for content that violates its policies, said Renee DiResta, research manager at the Stanford Internet Observatory.
“The civic integrity policy was unchanged,” DiResta said of Twitter under its new ownership. "Now, there is a difference between having a policy and enforcing a policy.”
Shortly after Musk purchased Twitter, some users posted hate speech, seemingly to test the boundaries of the platform under its new owner.
Within just 12 hours of Musk’s purchase being finalized, references to a specific racist epithet used to demean Black people shot up by 500%, according to an analysis conducted by the Network Contagion Research Institute, a Princeton, New Jersey-based firm that tracks disinformation.
Twitter did not immediately respond Thursday to messages seeking comment on the findings of the new report.
2 years ago
Saudi doctoral student gets 34 years in prison for tweets
A Saudi court has sentenced a doctoral student to 34 years in prison for spreading “rumors” and retweeting dissidents, according to court documents obtained Thursday, a decision that has drawn growing global condemnation.
Activists and lawyers consider the sentence against Salma al-Shehab, a mother of two and a researcher at Leeds University in Britain, shocking even by Saudi standards of justice.
So far unacknowledged by the kingdom, the ruling comes amid Crown Prince Mohammed bin Salman’s crackdown on dissent even as his rule granted women the right to drive and other new freedoms in the ultraconservative Islamic nation.
Al-Shehab was detained during a family vacation on Jan. 15, 2021, just days before she planned to return to the United Kingdom, according to the Freedom Initiative, a Washington-based human rights group.
Al-Shehab told judges she had been held for over 285 days in solitary confinement before her case was even referred to court, the legal documents obtained by The Associated Press show.
The Freedom Initiative describes al-Shehab as a member of Saudi Arabia’s Shiite Muslim minority, which has long complained of systematic discrimination in the Sunni-ruled kingdom.
“Saudi Arabia has boasted to the world that they are improving women’s rights and creating legal reform, but there is no question with this abhorrent sentence that the situation is only getting worse,” said Bethany al-Haidari, the group’s Saudi case manager.
Leading human rights watchdog Amnesty International on Thursday slammed al-Shehab’s trial as “grossly unfair” and her sentence as “cruel and unlawful.”
Read: : Khashoggi killing: CIA did not blame Saudi crown prince, says Trump
Since rising to power in 2017, Prince Mohammed has accelerated efforts to diversify the kingdom’s economy away from oil with massive tourism projects — most recently plans to create the world’s longest buildings that would stretch for more than 100 miles in the desert. But he has also faced criticism over his arrests of those who fail to fall in line, including dissidents and activists but also princes and businessmen.
Judges accused al-Shehab of “disturbing public order” and “destabilizing the social fabric” — claims stemming solely from her social media activity, according to an official charge sheet. They alleged al-Shehab followed and retweeted dissident accounts on Twitter and “transmitted false rumors.”
The specialized criminal court handed down the unusually harsh 34-year sentence under Saudi counterterrorism and cybercrime laws, to be followed by a 34-year travel ban. The decision came earlier this month as al-Shehab appealed her initial sentence of six years.
“The (six-year) prison sentence imposed on the defendant was minor in view of her crimes,” a state prosecutor told the appeals court. “I’m calling to amend the sentence in light of her support for those who are trying to cause disorder and destabilize society, as shown by her following and retweeting (Twitter) accounts.”
The Saudi government in Riyadh, as well as its embassies in Washington and London, did not respond to a request for comment.
Leeds University confirmed that al-Shehab was in her final year of doctoral studies at the medical school.
“We are deeply concerned to learn of this recent development in Salma’s case and we are seeking advice on whether there is anything we can do to support her,” the university said.
Al-Shehab’s sentencing also drew the attention of Washington, where the State Department said Wednesday it was “studying the case.”
“Exercising freedom of expression to advocate for the rights of women should not be criminalized, it should never be criminalized,” State Department spokesperson Ned Price said.
The U.S. Commission on International Religious Freedom expressed concern on Twitter Thursday that the kingdom targeted al-Shehab “for her peaceful activism in solidarity w/political prisoners,” as well as for her Shiite identity.
Last month, U.S. President Joe Biden traveled to the oil-rich kingdom and held talks with Prince Mohammed in which he said he raised human rights concerns. Their meeting — and much-criticized fist-bump — marked a sharp turn-around from Biden’s earlier vow to make the kingdom a “pariah” over the 2018 killing of Saudi journalist Jamal Khashoggi.
During her appeal, al-Shehab said the harsh judgement was tantamount to the “destruction of me, my family, my future, and the future of my children.” She has two young boys, aged 4 and 6.
She told judges she had no idea that simply retweeting posts “out of curiosity and to observe others’ viewpoints,” from a personal account with no more than 2,000 followers, constituted terrorism.
2 years ago