Tesla investors say a judge found Elon Musk’s ‘funding secured’ tweet was misleading

A group of shareholders said a federal judge recently ruled that Musk made false and misleading statements when he said he was considering taking the company private. Musk's now-infamous "funding secured" message on his verified account led to a $40 million settlement with the Securities and Exchange Commission, which he is now trying to end.

According to those documents, US District Court Judge Edward Chen concluded at the beginning of the month that Musk had recklessly made the statements with knowledge that they were false. The filing comes a week after Musk shared his version of what happened at the conference.

The SEC pursued an active, public investigation despite knowing that funding was secured, Musk said during the interview. I lied to save the company, and that is the only reason.

Musk's attorney dismissed the claims made by the investors. The damages from the lawsuit could amount to billions of dollars and would have to be paid by Musk and the company. On May 31st, the case will go to trial.