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A Delaware judge has sided with Elon Musk in a $13 billion lawsuit brought by Tesla shareholders, which accused the executive of coercing the electric vehicle company’s board into buying SolarCity back in 2016.
Seeking as much as $13 billion in damages, the shareholders alleged the SolarCity deal amounted to “a rescue from financial distress, a bailout, orchestrated by Elon Musk,” per a January statement from the plaintiff’s attorney, Randy Baron. Yet while the court concluded that Musk “was more involved in the process than a conflicted fiduciary should be,” it ultimately ruled in favor of the “technoking” on all counts. Shareholders still have the option to file an appeal.
“[The] Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way,” read the opinion by Vice Chancellor Joseph Slights. “Equally if not more important, the preponderance of the evidence reveals that Tesla paid a fair price—SolarCity was, at a minimum, worth what Tesla paid for it,” Slights added.
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