Tesla shareholders alleged that Tesla buying the solar installer amounted to a bailout, pushed through by Elon Musk who sat on both company boards at the time.
Highlights
- Delaware court rules in favor of defendant Elon Musk in a shareholder lawsuit over Tesla’s $2.6 billion acquisition of SolarCity.
- Tesla shareholders alleged the company’s acquisition of the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time.
- Vice Chancellor Joseph R. Slights, who decided the case shortly before retiring, sided with Musk, writing: “Elon was more involved in the process than a conflicted fiduciary should be” Musk denied that he placed any pressure on the Tesla board to go through with the transaction.
- Had he lost, Musk could have had to pay upwards of $2 billion.