Tesla (TSLA) Merger with SolarCity (SCTY) Could Be Delayed
Author By Sophia VidaPosted on Four lawsuits may keep the Tesla Motors and SolarCity Corp. merger from happening on schedule.
These lawsuits are seeking an injunction to stop the transaction, and could possibly hold up a deal until an earliest scheduled hearing on Oct. 18.
In a regulatory filing released Monday, Four different shareholders have alleged that Tesla’s executives and board breached their fiduciary duty by entering into the pact because Tesla Chairman Elon Musk and other Tesla insiders hold shares in both companies.
Tesla considers the cases to be without merit, according to the filing.
The lawsuits is seeking to force Tesla to rescind the merger proposal and pay damages to the shareholders. One shareholder is also seeking to establish a class action against Tesla. According to the filing, the Delaware Chancery Court set a schedule on Sept. 16 to consolidate the actions and determine a leadership structure for the plaintiffs.
Disclaimer: We have no position in Tesla Motors Inc. (NASDAQ: TSLA) nor SolarCity Corp (NASDAQ: SCTY) and have not been compensated for this article.
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