Connect with us

Electric Cars

Elon Musk will be asked questions for $ 2.6 billion: he is accused of pressure on Tesla to buy SolarCity

Published

on

Tesla shareholders have filed a lawsuit against company founder Elon Musk, in which he is accused of using his control over Tesla to buy out SolarCity, founded by his cousins, and save it from bankruptcy.

The union retirement funds and asset managers in charge of the case are demanding that Musk pay Tesla the $ 2.6 billion deal value and profits from his SolarCity stock. If they win, it will be one of the most severe sentences ever against one person.

Ann Lipton, a professor at Tulane University School of Law, noted that this would be a very unusual lawsuit, given Musk’s status, his personal ties to Tesla’s board members, and those board members’ financial ties to SolarCity.

Plaintiffs allege that Musk was negotiating and even pushed Tesla’s board of directors to raise rather than lower the price of SolarCity. The higher price benefited Musk, who was SolarCity’s largest shareholder with about 22%, and the four Tesla board members who directly or indirectly owned SolarCity shares. Plaintiffs also allege that Musk’s two cousins, who founded SolarCity, benefited greatly from the deal.

Musk said that he was “completely removed” from negotiations with the board of directors and that shareholders themselves voted to approve the deal. He also said that what the plaintiffs regard as evidence of control is nothing more than strong leadership.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Latest News

Phones40 mins ago

IP68, 5G, 48 MP, 4630 mAh and the prospect of upgrading to Android 14. Nokia XR20 rugged smartphone presented

HMD Global has officially unveiled the rugged Nokia XR20 smartphone. The novelty is protected in accordance with the American military...

Software1 hour ago

Android 12 beta 3.1 is out to fix three big Android 12 issues

Despite the fact that Android 12 has already grown to the third beta version, it does not differ at all...

Software1 hour ago

13,200 mAh, NFC, IP69K, 48 MP and Android 11 for $ 300. The unkillable monster of autonomy Ulefone Power Armor 13 began selling

Ulefone announced the start of sales of its new smartphone – Power Armor 13. The peculiarity of this model is...

Electric Cars2 hours ago

Tesla published its report for the second quarter of 2021

Tesla has published a report for the second quarter of 2021. Revenue for the last quarter was $ 11.958 billion....

News3 hours ago

Amazon Denies Message That It Plans To Accept Bitcoin

E-commerce giant Amazon.com has denied media reports that it intends to start accepting payments in Bitcoin before the end of...

News4 hours ago

EU gives Google two months to change search results for hotels and flights

Search giant Google has two months to “improve” the way it presents its search results on the Internet by flight...

News4 hours ago

Intel renames manufacturing processes

Intel has decided to amend the naming of its technical processes in accordance with the advanced technological standards. More precisely,...

Components6 hours ago

Apple dominates tablet processor market with 59% share

Although the second quarter of 2021 has already ended, experts from the analytical company Strategy Analytics have just summed up...

Advertisement

Most Popular