Berger Montague Investigating Class Action Claims Against Tesla, Inc. and Elon Musk
August 27, 2018. PHILADELPHIA— Tesla, Inc. (NASDAQ: TSLA) and CEO Elon Musk (“Musk”) are accused of federal securities law violations in a class action filed on behalf of purchasers or sellers of TSLA securities during the Class Period of August 7, 2018 to August 14, 2018, inclusive, which extends the class period in an earlier filed case. The case is pending in the U.S. District Court for the Northern District of California, and the deadline for TSLA class members to file a lead plaintiff motion with the Court is October 9, 2018.
If you purchased Tesla stock, bonds, or call options, including purchases to cover any short positions, and sellers of put options, during the Class Period and suffered damages you may, no later than October 9, 2018, request that the Court appoint you lead plaintiff of the proposed class. You do not need to be a lead plaintiff to recover as an absent class member.
If you wish to discuss the claims against Tesla and Musk or have any questions concerning your rights or interests, contact Barbara A. Podell, Esq. or Michael C. Dell’Angelo, Esq. at (215) 875-3000 or visit Berger Montague’s website. 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 complaints, defendants made false and misleading statements to the market. Musk tweeted on August 7, 2018, “Am considering taking Tesla private at $420,” and “funding secured.” The lawsuits allege that despite Musk’s tweets, which caused the stock to jump from $348 to almost $380 per share, no funding had been secured.
On August 8, 2018, doubt that financing was secured spread. This caused Tesla stock to fall by $9.23 per share, to close at $370.34 per share on August 8. On August 9, 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%, as news spread that Tesla’s board of directors and the SEC are investigating the matter.
The lawsuit further alleges that on August 13, Musk tweeted “I’m excited to work with Silver Lake and Goldman Sachs as financial advisors . . . on the proposal to take Tesla private.” But on August 14, Bloomberg published an article titled “Goldman Is Said to Have No Mandate When Musk Tweeted,” reporting that neither Goldman nor Silver Lake were officially working with Musk when Musk tweeted that the firms were advising him. The complaint alleges these false statements harmed class members.
Berger Montague has been a pioneer in securities litigation since its founding in 1970, has represented individual and institutional investors for more than four decades and serves as lead counsel in courts throughout the United States. If you wish to discuss this matter with us, please contact the attorneys listed below.