BusinessWorld

Law firm Howard G Smith announces Class Action Lawsuit against Tesla

New York, Oct 3, (IENews) Law Offices of Howard G. Smith announced that a class action lawsuit has been filed on behalf of investors that purchased Tesla, Inc. (“Tesla” or the “Company”) (NASDAQ: TSLA) securities between August 7, 2018 to August 17, 2018, inclusive (the “Class Period”).

Tesla investors have until October 9, 2018 to file a lead plaintiff motion.

On August 7, 2018, Tesla’s CEO Elon Musk stated via Twitter: “Am considering taking Tesla private at $420. Funding secured.”

On August 8 and August 9, 2018, media outlets reported that the U.S. Securities and Exchange Commission had made inquiries into Musk’s announcement and whether, in fact, he had “funding secured” to take Tesla private.

On this news, Tesla’s stock price fell $27.12 per share, or more than 7%, to close at $352.45 on August 9, 2018, thereby injuring investors.

The Complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had not secured funding for a transaction to take Tesla private; (ii) Tesla’s Board of Directors was unaware of any plan to take Tesla private; (iii) Musk had not retained advisors in connection with his purported plan to take Tesla private; (iv) the status and likelihood of Tesla going private was therefore misrepresented to the market; and (v) as a result, Tesla’s public statements were materially false and misleading at all relevant times.

(Source: BusinessNews Wire)

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