The Delaware Court of Chancery, in In re Tesla Motors, Inc. Stockholder Litigation, C.A. No. 12711-VCS (consol.), memo. op. (Del. Ch. Feb. 4, 2020), rejected defendants’ argument that a presumption of inherent coercion cannot apply to a controlling stockholder after discovery, and that evidence of coercion is required to survive a motion to dismiss.
NEW: Legal Newsline discusses the decision in Tesla shareholder lawsuit against Elon Musk will proceed.
NEW: Frank Reynolds discusses the decision in Chancery: Tesla investors need only prove Musk had coercive influence ability in SolarCity deal.
DealLawyers.com discusses the decision in Controllers: The Heat is On in Delaware for Minority Shareholders.
Eric Talley, Anne Tucker, & Jamie Brumberger discuss the decision in Tesla, SolarCity, and Inherent Coercion
Alison Frankel discusses the decision in Elon Musk’s liability for Tesla’s SolarCity deal could come down to a question of his control.
$$$ Law360 discusses the decision in Chancery Puts $2.6B Tesla-SolarCity Deal Suit On Trial Track.