Judge sentences Elon Musk to $13 billion lawsuit over Tesla-SolarCity deal 2022-04-27 17:15:55


Tesla (TSLA) Shareholders have accused Musk of forcing Tesla’s board of directors to buy SolarCity, a struggling rooftop solar panel company, to salvage his investment, and are seeking damages of up to $13 billion.
The ruling comes at a time when Musk uses his vast wealth to acquire it Twitter (TWTR)which accepted his $44 billion offer on Monday.

“The preponderance of evidence reveals that Tesla paid a fair price – SolarCity, at least, was worth what Tesla paid for it, and the acquisition was very beneficial to Tesla,” Vice Counsel Joseph Slates of the Delaware District Court said. from Chancery.

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Neither Musk nor the plaintiffs’ attorneys immediately responded to a request for comment on the ruling.

Slates said the deal process had its flaws and that Musk was more involved than he should have been, but SolarCity’s fair price outweighs allegations that the deal unfairly influenced Musk.

The ruling follows a 10-day trial in July and can be appealed. Musk witnessed during the first two days.

Union pension funds and asset managers have claimed that Musk led Tesla’s negotiations on SolarCity while publicly claiming it was “completely rejected”.

The all-share deal was worth $2.6 billion in 2016.

Since then, Tesla’s stock price has soared, inflating the value of Musk’s purchase of SolarCity and thus the damages sought by the plaintiffs.

Musk, the world’s richest person with an estimated fortune of $265.6 billion according to Forbes magazine, owned about 22% of both companies at the time.