Faruqi & Faruqi, LLP appointed co-lead counsel in Tesla 'Tweet' Suit

In re Tesla, Inc. August 2018 Tweets Stockholder Derivative Litigation, Cons. C.A. No. 2018-0749-KSJM (Del. Ch. Oct. 17, 2018)

On February 1, 2023, Chancellor Kathaleen St. Jude McCormick appointed Faruqi & Faruqi, LLP, as co-lead counsel in the consolidated shareholder derivative action brought on behalf of Tesla, Inc. The consolidated action, which is currently pending in The Court of Chancery of the State of Delaware, stems from Elon Musk's tweets announcing that he was "considering taking Tesla private at $420. Funding secured."  The action generally alleges that Tesla's board of directors and its CEO, Elon Musk, breached their fiduciary duties by failing to implement and enforce a system of internal controls and procedures, failing to exercise their oversight duties by not monitoring Tesla's compliance with internal procedures and federal and state regulations, and consciously disregarding and failing to ensure that Mr. Musk's public statements were proper and accurate. The case is currently stayed pending the resolution of a related securities class action which is currently on trial. 

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