Partial Settlement of In re Tesla Motors, Inc. Stockholder Litigation
Consolidated C.A. No.: 12711-VCS
The parties have reached a partial settlement of $60 million in this action, pending in the Court of Chancery of the State of Delaware. Plaintiffs Arkansas Teacher Retirement System, Roofers Local 149 Pension Fund, Oklahoma Firefighters Pension and Retirement System, KBC Asset Management NV, Erste Asset Management GmbH, and Stichting Blue Sky Active Large Cap Equity Fund USA, on behalf of themselves and the Class, and derivatively on behalf of Tesla, Inc. (f/k/a Tesla Motors, Inc.) (“Tesla”) alleged that the members of the Tesla Board of Directors breached their fiduciary duties, unjustly enriched themselves and wasted corporate assets in connection with their approval of Tesla’s acquisition of SolarCity Corp. in 2016. This partial settlement resolves the claims brought against defendants Kimbal Musk, Antonio J. Gracias, Stephen T. Jurvetson, Brad W. Buss, Ira Ehrenpreis, and Robyn Denholm, but not the claims against defendant Elon Musk.
The Class means the class certified by the Court in its April 18, 2019 Stipulated Order of Class Certification and is defined as all record holders and beneficial owners of common stock of Tesla as of August 1, 2016, along with their successors and assigns, excluding the Individual Defendants and their associates, affiliates, legal representatives, heirs, successors in interest, transferees, and assigns.
The partial settlement was approved by the Court on August 17, 2020.
If you have any questions about the partial settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.