Directors of Tesla Inc settled a shareholder lawsuit over the company's 201...
) settled a shareholder lawsuit over the company’s 2016 acquisition of SolarCity Corp, leaving Chief Executive Officer Elon Musk as the lone defendant facing claims that Tesla paid $2.6 billion for a worthless solar energy system installer, according to court documents.
The settlement covered five current directors: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurvetson and Kimbal Musk. Brad Buss, who was a director at the time of the SolarCity deal, was also part of the settlement, which was paid from insurance policies, according to court documents. Tesla said in a statement to Reuters in September the allegations were “based on the claims of plaintiff’s lawyers looking for a payday, and are not representative of our shareholders.”
At the heart of the current case are allegations that Musk and the other board members did not fully disclose the depth of SolarCity’s problems, or their own conflicts. Tesla touted synergies of combining the companies in the all-stock deal, which was approved by Tesla shareholders.
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