NEW YORK, Aug. 15, 2018 /PRNewswire/ — Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a new a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of Tesla, Inc. (“Tesla” or the “Company”) (NASDAQ: TSLA) between August 7, 2018 and August 14, 2018, both dates inclusive (the “Class Period”). The lawsuit, which expands the class period asserted in recent lawsuits filed against the Company concerning Tesla’s proposed “going private transaction,” seeks to recover Tesla shareholders’ investment losses.
If you purchased Tesla securities, and/or would like to discuss your legal rights and options, please visit Tesla Shareholder Investigation or contact Daniel Sadeh toll free at (877) 779-1414 or email@example.com.
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) Tesla had not secured funding for the Company’s proposed “going-private transaction”; (2) the proposed “going-private transaction” required the approval of Tesla’s shareholders’ and not just Tesla’s Board of Directors; (3) Tesla’s Board of Directors were unaware whether Tesla secured funding for the proposed transaction; (4) 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 (5) 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.
According to the lawsuit, on August 8 and 9, 2018, the markets learned that Tesla’s proposed “going private transaction” was still being evaluated and could be rejected by Tesla’s Board. This allegedly contradicted Elon Musk’s statements the prior day that the proposed “going private transaction” was all but certain, with only a shareholder vote needed to complete it. The markets also learned that Mr. Musk’s tweet was now the subject of an SEC inquiry.
On this news, 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.
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. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Tesla securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/tesla-inc-tsla-lawsuit-class-action-fraud-stock-77/ or contact Daniel Sadeh toll free at (877) 779-1414 or firstname.lastname@example.org.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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