Elon Musk wins shareholder lawsuit over Tesla's $2.6 billion SolarCity acquisition

3 yıl önce

Elon Musk, chief executive officer of Tesla Inc., arrives at court during the SolarCity trial in Wilmington, Delaware, U.S., on Tuesday, July 13, 2021.

Al Drago | Bloomberg | Getty Images

Elon Musk won a shareholder lawsuit over Tesla's $2.6 billion acquisition of SolarCity.

Tesla shareholders had alleged that Tesla buying the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time. The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity.

Musk denied that he placed any pressure on the Tesla board to go through with the transaction. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations.

The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit.

This is breaking news. Please check back for updates.