Tesla Inc.’s $2.6 billion acquisition of SolarCity was entirely fair to shareholders, Delaware’s top court ruled, upholding the dismissal of an investor suit over the deal.
(Bloomberg) — Tesla Inc.’s $2.6 billion acquisition of SolarCity was entirely fair to shareholders, Delaware’s top court ruled, upholding the dismissal of an investor suit over the deal.
The Delaware Supreme Court on Tuesday ruled that negotiations over the deal “were conducted at arm’s-length, in good faith, with the advice of independent financial and legal advisors, led by an indisputably independent director, and, thus, constituted a fair process that led to a fair price.”
Tesla shares rose $2.04, or 0.9%, to $219.65 after the news.
The lawsuit alleged that Tesla co-founder Elon Musk was too involved in the buyout of the solar power company run by his cousins for the deal to be fair to the electric car maker’s shareholders
Read More: Musk’s Heavy Hand Tainted SolarCity Buyout, Investors Tell Court
The case is In Re Tesla Motors Inc. Stockholders Litigation, 181, 2022, Delaware Supreme Court (Dover).
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