NEW YORK, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP (“Labaton Sucharow”) announces that on September 6, 2018, it filed a securities class action lawsuit on behalf of prominent shareholder activist and short-seller Andrew E. Left, author and executive editor of Citron Research, against Tesla, Inc. (“Tesla” or the “Company”) (NASDAQ: TSLA), and its Chairman and Chief Executive Officer Elon R. Musk (“Musk” and together with Tesla, “Defendants”). The action, which is captioned Left v. Tesla, Inc., No. 18-cv-5463 (N.D. Cal.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons other than Defendants who purchased, sold, or otherwise transacted in Tesla securities between August 7, 2018 and August 17, 2018, inclusive (the “Class Period”).
The complaint alleges that Tesla’s Chief Executive Officer (Elon Musk) artificially manipulated the price of Tesla securities with objectively false tweets in order to “burn” the Company’s short-sellers. Specifically, on August 7, 2018, Defendants misrepresented they had “funding secured” for a buyout to take Tesla private and “[i]nvestor support is confirmed.” The truth regarding the supposedly “secure” financing needed to effectuate the going-private transaction emerged in the succeeding days, exposing the fraudulent scheme and in the process injuring all Class Period investors as the price of Tesla securities deteriorated rapidly.
The SEC has reportedly opened a formal inquiry into whether Defendants manipulated Tesla securities, questioning whether there was a “factual basis” for the going-private transaction. According to news reports, the SEC recently subpoenaed Defendants as they dig deeper into their statements.
“This appears to be a textbook case of fraud,” said Michael Canty, Labaton Sucharow partner and former federal prosecutor in the Eastern District of New York. “We believe Musk attempted to manipulate the price of Tesla securities with false and misleading tweets, in a directed effort to harm short-sellers.”
If you purchased, sold, or otherwise transacted in Tesla securities during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Northern District of California no later than October 9, 2018. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at fmcconville@labaton.com. You can view a copy of the complaint online at, https://www.labaton.com/en/about/press/Labaton-Sucharow-Files-Securities-Class-Action-Lawsuit-on-Behalf-of-Shareholder-Activist-Andrew-E-Left-of-Citron-Research-Against-Elon-Musk-and-Tesla-Inc.cfm?cs_forceReadMode=1.
Andrew E. Left is represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $2 trillion. Labaton Sucharow’s litigation reputation is built on its half-century of securities litigation experience, more than 60 full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at www.labaton.com.