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Old January 19th, 2022 #62
Stewart Meadows
Senior Member
Join Date: May 2018
Posts: 21,961
Stewart Meadows

Tesla investors urge judge to order Musk repay $13 bln for SolarCity deal

By Tom Hals
January 18, 2022

WILMINGTON, Del, Jan 18 (Reuters) - Tesla Inc (TSLA.O) shareholders urged a judge on Tuesday to find Elon Musk coerced the company's board into a 2016 deal for SolarCity and asked that the chief executive be ordered to pay the electric vehicle company one of the largest judgments ever of $13 billion.

"This case has always been about whether the acquisition of SolarCity was a rescue from financial distress, a bailout, orchestrated by Elon Musk," Randy Baron, an attorney for shareholders, told the Zoom hearing.

The closing arguments recounted key findings from a 10-day trial in July when Musk spent two days on the stand defending the deal.

The lawsuit by union pension funds and asset managers alleges that Musk strong-armed the Tesla board into approving the deal for the cash-strapped SolarCity, in which Musk was the top shareholder.