FILE PHOTO: Tesla Model 3 car is displayed during a media preview at the Auto China 2018 motor show in Beijing, China, April 25, 2018. REUTERS/Jason Lee/File Photo
SAN FRANCISCO (Reuters) – A federal judge in San Francisco dismissed for the second time in a securities fraud lawsuit brought by Tesla Inc. shareholders who claimed that the company’s misleading comments about the status of the production of the Model 3.
U. S. District Judge Charles Breyer sided with Tesla, the allocation of the electric car company the dismissal of the lawsuit in October 2017. Breyer dismissed the original lawsuit in August, but allowed plaintiffs to file an amended.
The lawsuit sought class-action status for shareholders who purchased Tesla stock between May 3, 2016 through Nov. 1, 2017.
It said that the shareholders bought “artificially inflated” stock, because Musk and other executives misled them with positive statements about the production ramp of the Model 3, failing to disclose that the company was “totally unprepared” for the vehicle of the production.
Tesla claimed in his defence that the coming about the challenges in Model 3 of the production, including repeated statements by Musk that Tesla is in “production hell.”
Breyer wrote that the allegations of fraud are ignored Tesla’s “repeated warnings about Model 3 the production of risks.”
Reporting by Alexandria Sage; Editing by Sandra Maler