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:
- agreeing to acquire SolarCity Corporation for an exorbitant price; and
- 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.
