The law firm Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or acquired, sold, or had open short positions or put options for the securities of Tesla, Inc. ("Tesla" or the "Company") TSLA between August 7, 2018 and August 14, 2018, inclusive (the "Class Period").
If you purchased or otherwise acquired, sold, or had open short positions or put options for Tesla securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 9, 2018. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
Tesla investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Tesla Securities Class Litigation
Tesla, incorporated in Delaware and headquartered in Palo Alto, California, designs, manufactures, and sells electric vehicles and electric vehicle powertrain components.
The action alleges that, during the Class Period, defendants Tesla and Elon Musk, Tesla's Chairman and Chief Executive Officer, issued false and misleading statements and/or failed to disclose material adverse facts regarding a possible deal to take the Company private. The action alleges that defendants specifically failed to disclose: (1) that defendants had not secured funding for a transaction to take the Company private; (2) that Musk's statements that the deal only required shareholder approval to proceed were false; and (3) that the status and likelihood of the deal were misrepresented to the market given that financing was not secured and the approval of the Board was still required.
On August 7, 2018, Musk stated in a tweet that he was "considering taking Tesla private at $420. Funding secured." He then stated in another tweet that "[i]nvestor support is confirmed. Only reason why this is not certain is that it's contingent on a shareholder vote." On this news, the price of Tesla common stock rose $37.58, almost 11% higher than the previous closing price of $341.99 on August 6, 2018, to close at $379.57 per share on August 7, 2018, on extremely heavy trading volume.
On August 8, 2018, before markets opened, members of Tesla's Board of Directors issued a statement revealing that the board was still evaluating the prospect of taking Tesla private, and thus confirmed that any deal was still subject to board approval. On this news, the price of Tesla common stock fell $9.23 per share, or 2.43% from the previous day's closing price, to close at $370.34 per share on August 8, 2018, on heavy trading volume.
The same day, after markets closed, The Wall Street Journal reported that the Securities and Exchange Commission ("SEC") had asked Tesla about Musk's announcement on August 7, 2018 and that Musk "could be in trouble if regulators develop evidence that he made a statement aimed at goosing his company's stock price."
On August 9, 2018, Reuters reported that Tesla's Board of Directors was investigating whether funding was in fact "secured." On this news, the price of Tesla's common stock dropped $17.89 per share, or 4.83% from the previous day's closing price, to close at $352.45 per share on August 9, 2018, on heavy trading volume.
On the morning of August 13, 2018, Musk posted a statement on Tesla's blog confirming that funding for a deal to take Tesla was not yet secured, that proceeding on a deal with Saudi Arabia's sovereign wealth fund for funding was "subject to financial and other due diligence and their internal review process for obtaining approvals."
The same day, after the markets closed, Musk stated in a tweet: "I'm excited to work with Silver Lake and Goldman Sachs as financial advisors … on the proposal to take Tesla private." Then, on August 14, 2018, Bloomberg reported that neither Goldman Sachs nor Silver Lake were yet working with Musk in an official capacity. On this news the price of Tesla common stock dropped $8.77 per share, or 2.46% from a previous closing price of $356.41 on August 13, 2018, to close at $347.64 per share on August 14, 2018.
On August 15, 2018, The Wall Street Journal reported that the SEC had formally subpoenaed Tesla and was seeking information from each of the Company's directors.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation's top plaintiffs' law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity." Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm's "laser focus" and noting that our firm routinely finds itself "facing off against some of the largest and strongest defense law firms in the world." In late 2016, Benchmark Litigation named Lieff Cabraser one of the "Top 10 Plaintiffs' Firms in America."
For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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