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Tesla’s $2.6 Billion SolarCity Buyout Ruled Fair as Dismissal of Shareholder Suit Upheld
- Delaware’s top court upholds dismissal of shareholder suit
- Talks were ‘arm’s-length’ and led to fair price, panel finds
A SolarCity Corp. employee carries a solar panel during installation in Kendall Park, New Jersey.
Photographer: Michael Nagle/Bloomberg
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Tesla Inc.’s $2.6 billion acquisition of SolarCity in 2016 was “entirely fair” to shareholders, Delaware’s top court ruled, upholding the dismissal of an investor lawsuit and sparing Elon Musk from a potential multibillion-dollar hit.
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.”