NOTABLE CASES

Tesla and Shareholders Agree to a Partial $60 Million Settlement in SolarCity-Related Class Action

March 4, 2020

CASE SUMMARY

On August 1, 2016, Tesla (“Company”) announced that the Board of Directors (“Board”) agreed to acquire SolarCity Corporation (“SolarCity”) in an all-stock deal, valuing SolarCity at approximately $2.6 billion or $25.37 per share based on the five-day volume weighted average price as of July 29, 2016 (“Proposed Acquisition”).

The Complaint alleges that the Board breached their fiduciary duty to the Company’s stockholders by:

  1. agreeing to acquire SolarCity Corporation for an exorbitant price; and
  2. issuing a misleading Preliminary Joint Proxy Statement/Prospectus that omits necessary and material information on whether to vote in favor of the Proposed Acquisition.

CLASS DEFINITION

On behalf of all record holders and beneficial owners of common stock of Tesla Motors, Inc. (“Tesla” or the “Company”) as of August 1, 2016.

INITIAL FEDERAL FILING DATE

September 13, 2016

ELIGIBLE SECURITY ID’s

Tesla Motors, Inc. (no ticker)
BDCCPV0

Tesla Motors, Inc. (TSLA)
88160R101; B3XFVH6; B616C79; BJZ2C96; BRTMB80; BSJC712; US88160R1014

SETTLEMENT AMOUNT

$60,000,000
Note: As of March 3, 2020, this is a partial and tentative settlement only

CLASS PERIOD

See “Class Definition”

CLAIM DEADLINE DATE

TBD

CLAIMS ADMINISTRATOR

TBD

COURT

Delaware Chancery Court

JUDGE

Vice Chancellor Joseph R. Slights III

LEAD PLAINTIFF FIRMS

Arkansas Teachers Retirement System
Roofers Local 149 Pension Fund
Oklahoma Firefighters Pension and Retirement System
KBC Asset Management NV
Erste Asset Management GmbH
Stitching Blue Sky Active Large Cap Equity Fund USA

LEAD COUNSEL FIRMS

Grant & Eisenhofer
Kessler Topaz Meltzer & Check
Robbins Geller Rudman & Dowd

Never miss an opportunity for recovery.

Learn more about this settlement and how SCAS can help your organization participate.

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