Description: Claims against proposed acquisition of SolarCity Corporation by Tesla Motors, Inc.
In re Tesla Motors, Inc. Stockholder Litigation
Filing Date Type File Action Taken Summary 03/16/2017 Complaint Download Second amended verified class action and derivative complaint filed. After the cases challenging Tesla's acquisition of SolarCity were consolidated, an amended complaint, and then a second amended complaint, were filed. The operative complaint no longer contained allegations regarding the acquisition's purported role in company founder Elon Musk's efforts to combat climate change, including the allegations from at least one original complaint that Tesla’s proposed acquisition of SolarCity—a company that the complaint alleged was started “to support Musk’s quest to fix climate change”— was driven by Musk’s desire to “ensure his legacy to change the world” by shifting to a solar electric economy.
Prasinos v. Musk
Filing Date Type File Action Taken Summary 10/19/2016 Order Download Actions consolidated. On October 19, 2016, seven lawsuits challenging Tesla's acquisition were consolidated. 09/06/2016 Complaint Download Stockholder derivative complaint filed. Tesla Shareholder Filed Suit Challenging Proposed Acquisition of SolarCity, Said Founder’s Desire to Change the World by Combatting Climate Change Was at Odds with Company’s Interests. A Tesla Motors, Inc. (Tesla) stockholder filed a stockholder derivative complaint asserting that Tesla’s proposed acquisition of SolarCity Corporation (SolarCity) would cause substantial damage to Tesla. Tesla is in the energy storage and electric car business. SolarCity describes itself as “America's #1 full-service solar provider.” The defendants were Tesla co-founder, chairman, and chief executive officer Elon Musk; other Tesla board members; SolarCity, for which Musk is chairman and the largest stockholder; other SolarCity directors and officers; and a Tesla subsidiary created for the purpose of acquiring SolarCity. The complaint, filed in the Delaware Court of Chancery, stated claims of breach of fiduciary duty, waste, and unjust enrichment. It is one of at least four complaints filed in the court in connection with the SolarCity acquisition. The complaint asserted that Tesla’s proposed acquisition of SolarCity—a company that the complaint alleged was started “to support Musk’s quest to fix climate change”— was driven by Musk’s desire to “ensure his legacy to change the world” by shifting to a solar electric economy. The complaint alleged that the acquisition was intended to protect Musk and his family’s and friends’ financial interests, and that the acquisition would not be in the best interests of Tesla and its shareholders.