On October 17, 2018, Faruqi & Faruqi, LLP filed a shareholder derivative lawsuit in the Court of Chancery of the State of Delaware, C.A. No. 2018-0749, on behalf of Tesla, Inc. (“Tesla”) and its stockholders. The complaint alleges in part that Tesla’s officers and directors breached their fiduciary duties and violated state law in connection with Elon Musk’s allegedly false and misleading statements about taking the company private that has caused Tesla, amongst other things, to be sued by the Securities and Exchange Commission and settle that case for $20 million, name two new independent directors, create a permanent committee to review company statements prior to public dissemination, and hire a securities attorney to ensure compliance with SEC disclosure regulations.
A copy of the Complaint can be found below.
A report from Law360 can be found here.