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Friday, March 29, 2024

Tesla shareholder files suit alleging stock prices were artificially inflated

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SAN FRANCISCO (Legal Newsline) – A shareholder of electric car maker Tesla alleges tweets from the company's CEO this month caused stock prices to artificially inflate.

John Yeager filed a complaint individually and on behalf of all others similarly situated on Aug. 13 in the U.S. District Court for the Northern District of California against Tesla Inc. and Elon Musk alleging violations of Federal Securities Laws.

According to the complaint, the plaintiff is suing on behalf of a class of members who purchased or acquired Tesla stock between Aug. 7 and Aug. 9. The plaintiff alleges Musk posted on Twitter that he was considering making the company private at $420 per share. The plaintiff alleges this statement was false and caused stock prices to inflate and then decline.

The plaintiffs hold Tesla Inc. and Musk responsible because the defendants allegedly made untrue statements of material fact and the dissemination of the false and misleading information caused stock prices to artifically inflate.

The plaintiffs request a trial by jury and seek judgment against the defendants, certify class action, award compensatory damages, costs, expenses, counsel fees, expert fees, equitable and/or injunctive relief, and further relief as the court may deem just. He is represented by John T. Jasnoch and Joe Pettigrew of Scott+Scott Attorneys At Law LLP in San Diego, California; and Thomas L. Laughlin and Rhiana L. Swartz of Scott+Scott Attorneys At Law LLP in New York.

U.S. District Court for the Northern District of California case number 18-cv-04912

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