US District Judge Edward Chen has ruled that Tesla CEO Elon Musk will not be subjected to a “gag order” preventing him from discussing a lawsuit that claims he defrauded Tesla shareholders by tweeting about taking his EV company private back in 2018.
Judge Chen agreed with Musk and Tesla that the proposed temporary restraining order was excessive as it prevented Musk from discussing the case with anyone at all.
Judge Chen also found no proof that letting Musk speak publicly would pose a “serious and imminent threat” to the trial.
However, Judge Chen also said that he plans to inform jurors at the trial, scheduled for January 2023, that he had already found Musk’s tweets to be false and that the tweets were made with sufficient knowledge that they were false.
Tesla shareholders sued Musk and the EV company over losses resulting from volatility in Tesla's shares after Musk made a tweet in August 2018 saying he had “funding secured” to potentially take Tesla private at $420 per share.
