RADNOR, Pa., Aug. 10, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Tesla, Inc. (NASDAQ: TSLA) (“Tesla” or the “Company”) and its CEO, Elon Musk (“Musk”), on behalf of investors who purchased or sold Tesla securities between August 7, 2018 and August 10, 2018, inclusive (the “Class Period”).
IMPORTANT DEADLINE: Investors who purchased or sold Tesla securities during the Class Period may, no later than October 9, 2018, seek to be appointed as a lead representative of the investor class. Tesla investors who have suffered financial harm are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or via http://kaskelalaw.com/case/tesla/, for additional information about this action and to discuss their legal options for recovery.
As detailed in the complaint, on August 7, 2018, defendant Musk stated on Twitter: (i) “Am considering taking Tesla private at $420”; (ii) “Funding secured”; (iii) “Shareholders could either to sell at 420 or hold shares & go private”; and (iv) “Investor support is confirmed.” These tweets drove the price of Tesla shares up as much as $45.47 per share, or up as much as about 13%, during intraday trading before closing at $379.57 on August 7, 2018.
However, since that time, both the U.S. Securities and Exchange Commission and Tesla’s board of directors are reportedly investigating the truth of Musk’s tweets, and whether in fact funding had been secured. Major investors and banks have unanimously stated that they are aware of no such funding. In the face of these investigations and demand for support for the false statements set forth above, defendants have remained silent – evidencing the lack of support for the false statements and driving the price of Tesla’s securities down to near pre-tweet levels, with its common stock closing at $355.49 on August 10, 2018.
The shareholder class action complaint alleges that defendants materially misled investors as to the following material facts: (i) contrary to defendant Musk’s statements that funding had been “secured” to take Tesla private at $420 per share, no such funding had been secured; and (ii) contrary to defendant Musk’s statement that investor support to take Tesla private “is confirmed,” there was no such confirmation. As a result of the foregoing, Tesla investors sustained significant investment losses.
Tesla investors are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 or http://kaskelalaw.com/case/tesla/ for additional information about this action and their legal options for recovery. Kaskela Law LLC exclusively represents investors in state and federal courts throughout the country. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.