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USA judge admits shareholders class action law suit against Tesla's CEO

Team SoOLEGAL 30 Mar 2018 4:24pm

USA judge admits shareholders class action law suit against Tesla's CEO

Shareholders plea for class action lawsuit against electronic car maker Tesla's CEO Elon Musk for SolarCity deal was admitted by the Delaware judge.

The shareholders have alleged that by approving the SolarCity deal the board of Tesla has worked against the interest of the shareholders.

In all stock deal struck in 2016 the EV maker Tesla had bought solar panel installer SolarCity for $2.6 billion. Elon Musk at that time was the biggest shareholder in both Tesla and SolarCity, and his SolarCity shares were converted to $500 million of Tesla shares.

It is “conceivable that Musk, as a controlling stockholder, controlled the Tesla board” during the SolarCity deal, the judge said.

“We do not agree with the decision and will be taking appropriate next steps,” a Tesla spokesperson said.


Tagged: Tesla   Elon Musk   SolarCity  
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