NEW YORK, Sept. 27, 2018 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP announces that a securities class action lawsuit has been filed against Tesla, Inc. (NASDAQ: TSLA) and its Chief Executive Officer Elon Musk, alleging that Mr. Musk “artificially manipulated the price of Tesla stock” by taking to Twitter to announce fictional plans to take the publicly listed car company private.
The action is on behalf of all persons other than Defendants who purchased, sold, or otherwise transacted in Tesla securities between August 7, 2018 and August 17, 2018, inclusive (the “Class Period”). If you would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than October 9, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose, among other things, that: (1) Tesla had not secured funding for the Company's proposed "going-private transaction"; (2) the status and likelihood of the proposed "going-private transaction" was misrepresented to the market because the financing for the proposed transaction had not been secured and because it required the approval of both Tesla's Board of Directors and its shareholders; and (3) as a result of the foregoing, Defendants' statements about Tesla's business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
Upon the market learning that Mr. Musk’s statements were inaccurate, Tesla's shares fell $9.23 per share, or 2.4%, to close at $370.34 per share on August 8, 2018, and on August 9, 2018, Tesla shares fell $17.89 per share, nearly 5%, to close at $352.45 per share, resulting in a two-day decline of more than 7% per share.
The lawsuit further alleges that on August 13, 2018, during aftermarket hours, Mr. Musk tweeted that "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, according to the lawsuit, on August 14, 2018, Bloomberg published an article entitled "Goldman Is Said to Have No Mandate When Musk Tweeted," stating that neither Goldman Sachs or Silver Lake were yet working with Mr. Musk pursuant to a signed agreement or in an official capacity when Musk stated on Twitter late Monday, August 13, 2018, that both firms were working with him as financial advisers.
On this news, Tesla's shares fell $8.77 per share, or nearly 2.5%, to close at $347.64 per share on August 14, 2018, damaging investors.
The United States Securities and Exchange Commission has today filed a securities fraud action against Mr. Musk based upon the allegations stated above.
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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