Tesla investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Tesla is headquartered in Palo Alto, California and specializes in electric vehicles, lithium-ion battery energy storage and solar panel manufacturing. Elon R. Musk (“Musk”) co-founded Tesla, and at all relevant times has served as the company’s Chief Executive Officer (“CEO”) and Chairman.
The Class Period commences on August 7, 2018, when Musk stated the following on his personal Twitter: (1) “Am considering taking Tesla private at $420. Funding secured;” (2) “Shareholders could either to sell at 420 or hold shares & go private;” (3) “Investor support is confirmed.” Additionally, on August 7, 2018, Tesla stated on its Twitter account: “Taking Tesla Private.” Following this news, the common stock price rose $37.58, almost 11% higher than the previous closing price of $341.99 on August 6, 2018, to close at $379.57 per share on August 7, 2018.
The complaint alleges that on August 8, 2018, it was announced that the SEC was making inquiries regarding the veracity of the tweets sent by Musk and the reason the disclosures were made via a social media posting rather than a filing with the SEC. Following this news, Tesla’s stock price declined $9.23 per share to close at $370.34 per share on August 8, 2018.
Then, on August 13, 2018, Musk tweeted: “I’m excited to work with Silver Lake and Goldman Sachs as financial advisors, plus Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisors, on the proposal to take Tesla private.” However, on August 14, 2018, Bloomberg reported that Goldman Sachs and Silver Lake had not officially signed on when Musk issued his tweet on August 13, 2018.
Finally, on August 17, 2018, The New York Times published an interview with Musk in which he described the circumstances leading up to the tweet, including his high stress levels and his use of Ambien to cope with the stress. Following this news, the price of Tesla stock declined $29.95 per share to close at $305.50 per share on August 17, 2018.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (a) funding for the going-private transaction was not secured at the time of Musk’s August 7, 2018 tweets; (b) the Board was not aware of the plan to take Tesla private; (c) advisors for such a transaction had not been retained; and (d) as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than October 9, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. 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 toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. 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.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
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