| COMPANY |
Tesla, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
18-cv-04865 |
| JUDGE |
The Hon. Edward Milton Chen |
| CLASS PERIOD |
August 7, 2018 - August 17, 2018 |
| SECURITY TYPE |
Securities |
Case Background:
On August 10, 2018, the initial complaint in this securities class action was filed against Tesla, Inc. (“Tesla” or the “Company”), and Tesla’s Chief Executive Officer (“CEO”), Elon Musk, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action lawsuit brought on behalf of all individuals and entities who purchased or sold Tesla stock, options, and other securities from 12:48 p.m. EDT on August 7, 2018 to August 17, 2018, (“Class Period”) both dates inclusive.
The complaint (“Complaint”) alleges that Tesla and the Company's CEO violated the Securities Exchange Act of 1934 by issuing false and misleading statements regarding taking the Company private. In particular, and importantly, at 12:48 pm eastern standard time on August 7, 2018, the CEO issued a statement via Twitter that "funding" for the deal had been "secured". In reaction to the CEO's Tweet, the price of Tesla's stock soared to an intra-day high of $387.46, $45.47 above the previous day's closing price, closing at $379.57 per share. The Complaint alleges that the CEO was not telling the truth. Rather, he had Tweeted to decimate the Company's short-sellers who were forced to cover their positions over the succeeding days at artificially inflated prices. Indeed, the price of Tesla stock also remained inflated throughout the next day, August 8, 2018.
Current Status of Case:
In February 2023, this case went to trial. On February 3, 2023, a jury entered a verdict in favor of the Defendant. On July 14, 2023, Lead Plaintiffs filed an appeal with the Ninth Circuit Court of Appeals. This action is ongoing and on appeal.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.