This morning Tesla Motors revealed in a regulatory filing that no less than four lawsuits have been filed so far in September attempting to block the companys acquisition of SolarCity. The suits were filed by a variety of actors, including the Arkansas Teachers Retirement System, the City of Riviera Beach Police Pension Fund, and two individual investors.
The suits seek material damages and to stop the acquisition, arguing that Tesla has not acted in the best interests of its shareholders, with some additionally claiming that regulatory filings did not disclose important information. All name the Tesla board as defendants, and some additionally name SolarCity executives. On September 8, the plaintiff in one of the suits filed for a preliminary injunction to stop the merger.
Teslas proposed acquisition of SolarCity remains controversial, due to both disappointing recent financial results at SolarCity, Elon Musks interest in both companies and the familial relationships of Elon Musk and Peter and Lyndon Rive, who are cousins.
Following anti-trust approval by federal regulators in late August, this week Tesla and SolarCity shareholders are both expected to vote on the merger. Elon Musk, the Rive brothers and other key executives of both companies are all recusing themselves from this vote.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.