Elon Musk speaking at a SolarCity summit in New York in 2015.
Photo: RASHID ABBASI/REUTERS
Tesla Inc. Chief Executive Elon Musk didn’t act unlawfully when the electric-vehicle maker took over SolarCity Corp., a judge ruled Wednesday.
A group of Tesla shareholders had alleged that Mr. Musk controlled the takeover while having a financial interest in both companies, that many of its directors were conflicted and that Tesla overpaid for SolarCity. Mr. Musk has said he didn’t dictate the deal process or price and recused himself from the shareholder vote.
“My…
Tesla Inc.
Chief Executive
Elon Musk
didn’t act unlawfully when the electric-vehicle maker took over SolarCity Corp., a judge ruled Wednesday.
A group of Tesla shareholders had alleged that Mr. Musk controlled the takeover while having a financial interest in both companies, that many of its directors were conflicted and that Tesla overpaid for SolarCity. Mr. Musk has said he didn’t dictate the deal process or price and recused himself from the shareholder vote.
“My verdict is for the defense on all claims,” Vice Chancellor Joseph Slights III, the presiding judge in the shareholder lawsuit, wrote in his judgment.
(More to Come)
Write to Robert Wall at robert.wall@wsj.com
