Tesla: class action suit over Elon Musk tweet
(CercleFinance.com) - A law firm is suing Elon Musk and Tesla on behalf of plaintiffs to recover losses that it said were caused by "false" and "misleading statements" about taking the company private.
The class action suit filed on Friday by Keller Lenkner in the Northern District of California said that Elon Musk violated SEC rules by lying to investors.
The law firm believes that Musk was not telling the truth when he tweeted last Tuesday that he planned to take the company "private" and that "funding" for the deal had already been "secured".
As a result, Tesla shares jumped almost 11% that day.
But the only reason beyond Elon Musk's tweet was his will to "decimate the company's short-sellers who were forced to cover their positions over the succeeding days at artificially inflated prices," Keller Lenkner said.
Keller Lenkner - which is specialised in pursuing high-stake litigation for plaintiffs - said investors wishing to serve as plaintiffs for the class must file a motion with the court no later than 9 October.
Many investors believe that Tesla is unlikely to go private, and expect the board to reject Elon Musk's approach, which has led the stock to fall by almost 8% since last Tuesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The class action suit filed on Friday by Keller Lenkner in the Northern District of California said that Elon Musk violated SEC rules by lying to investors.
The law firm believes that Musk was not telling the truth when he tweeted last Tuesday that he planned to take the company "private" and that "funding" for the deal had already been "secured".
As a result, Tesla shares jumped almost 11% that day.
But the only reason beyond Elon Musk's tweet was his will to "decimate the company's short-sellers who were forced to cover their positions over the succeeding days at artificially inflated prices," Keller Lenkner said.
Keller Lenkner - which is specialised in pursuing high-stake litigation for plaintiffs - said investors wishing to serve as plaintiffs for the class must file a motion with the court no later than 9 October.
Many investors believe that Tesla is unlikely to go private, and expect the board to reject Elon Musk's approach, which has led the stock to fall by almost 8% since last Tuesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.