RADNOR, Pa., Aug. 15, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that shareholder class action lawsuits have been filed against Tesla, Inc. (NASDAQ: TSLA) (“Tesla” or the “Company”) and its CEO, Elon Musk (“Musk”), on behalf of certain investors who transacted in Tesla securities between August 7, 2018 and August 14, 2018, inclusive (the “Class Period”).
IMPORTANT DEADLINE: Investors who transacted in Tesla securities during the Class Period may, no later than October 9, 2018, seek to be appointed as a lead representative of the investor class. Investors seeking to take a proactive role in the litigation are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740 or skaskela@kaskelalaw.com, or online at http://kaskelalaw.com/case/tesla/, for additional information.
As detailed in the complaint, on August 7, 2018, defendant Musk stated on Twitter: (i) “Am considering taking Tesla private at $420”; (ii) “Funding secured”; (iii) “Shareholders could either to sell at 420 or hold shares & go private”; and (iv) “Investor support is confirmed.” These tweets drove the price of Tesla shares up as much as $45.47 per share, or up as much as about 13%, during intraday trading before closing at $379.57 on August 7, 2018.
On August 15, 2018, Bloomberg reported that Tesla “has received a subpoena from the U.S. Securities and Exchange Commission regarding Elon Musk’s effort to take the company private, indicating the regulatory scrutiny of his statements have reached a more serious stage. The demand for information, described by a person familiar with the matter, followed Musk’s tweet last week saying he was considering taking Tesla off the market and had ‘funding secured’ for the deal.” On August 15, 2018, Tesla’s shares closed below $340 – or below their pre-tweet trading price.
The shareholder class action complaint alleges that defendants materially misled investors as to the following material facts: (i) contrary to defendant Musk’s statements that funding had been “secured” to take Tesla private at $420 per share, no such funding had been secured; and (ii) contrary to defendant Musk’s statement that investor support to take Tesla private “is confirmed,” there was no such confirmation. As a result of the foregoing, Tesla investors have sustained significant investment losses.
Tesla investors who seek to take a proactive role in the litigation are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740 or skaskela@kaskelalaw.com, or online at http://kaskelalaw.com/case/tesla/, for additional information. Kaskela Law LLC exclusively represents investors in state and federal courts throughout the country. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
201 King of Prussia Road
Suite 650
Radnor, PA 19087
(888) 715 – 1740
skaskela@kaskelalaw.com
www.kaskelalaw.com