NOTABLE CASES
Tesla and Shareholders Agree to a Partial $60 Million Settlement in SolarCity-Related Class Action
March 4, 2020
CASE SUMMARY
On August 1, 2016, Tesla (“Company”) announced that the Board of Directors (“Board”) agreed to acquire SolarCity Corporation (“SolarCity”) in an all-stock deal, valuing SolarCity at approximately $2.6 billion or $25.37 per share based on the five-day volume weighted average price as of July 29, 2016 (“Proposed Acquisition”).
The Complaint alleges that the Board breached their fiduciary duty to the Company’s stockholders by:
- agreeing to acquire SolarCity Corporation for an exorbitant price; and
- issuing a misleading Preliminary Joint Proxy Statement/Prospectus that omits necessary and material information on whether to vote in favor of the Proposed Acquisition.
CLASS DEFINITION
On behalf of all record holders and beneficial owners of common stock of Tesla Motors, Inc. (“Tesla” or the “Company”) as of August 1, 2016.
