Musk went to court in shareholder lawsuit – Companies

Musk went to court in shareholder lawsuit - Companies

The case dates back to 2016, when Musk introduced I. was announced toThe acquisition of SolarCity by Tesla at the time being the largest installer of solar panels in the United States of America (USA). Shareholders of the electric vehicle company, meanwhile, have filed a lawsuit against the Tesla founder, who will face a judge this Monday if the solar panel company is awarded US$2.6 billion (US$2.32 billion, which was also controlled by Musk). ) was purchased. Tesla or Entrepreneur’s Profit.

Shareholders who sued say Musk took advantage of his dominant position in Tesla to force the acquisition of SolarCity, pointing to an overestimation of the value of the company that was already facing financial difficulties. .

Musk was a majority shareholder in SolarCity, but the company was owned by other partners who had already reached an agreement with investors to drop the lawsuit against him. They agreed to pay $60 million, which is equivalent to 50.5 million euros. Therefore, only the Tesla founder will be prosecuted in the event that it begins Monday in a Delaware court.

Tesla shareholders who filed the lawsuit now want compensation for the $2.6 billion deal, so Musk is incurring losses that could exceed $2 billion. According to the American press, this is the biggest lawsuit against a company manager.

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About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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