NEW YORK, Sept. 28, 2018 (GLOBE NEWSWIRE) — Labaton Sucharow announces an important shareholder update regarding Tesla, Inc. (NASDAQ: TSLA) and reminds shareholders of the class action lawsuit against Tesla and its Chief Executive Officer Elon Musk pending in San Francisco federal court.
On September 27, 2018, the U.S. Securities and Exchange Commission (“SEC”) sued Mr. Musk for fraud alleging that Mr. Musk made “false and misleading” statements when he announced on August 7, 2018 via Twitter that he had “funding secured” to take Tesla private. The SEC seeks civil penalties against Mr. Musk and asks a court to bar him from serving as a director or officer of a public company.
Labaton Sucharow LLP has filed a securities class action against Tesla and Mr. Musk on behalf of its client Andrew E. Left of Citron Research and all persons who purchased, sold, or otherwise transacted in Tesla securities between August 7, 2018 and August 17, 2018, both dates inclusive (the “Class Period”), seeking to recover damages Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder.
The class action, captioned Left v. Tesla, Inc., No. 18-cv-5463 (N.D. Cal.), alleges that Mr. Musk “artificially manipulated the price of Tesla stock” by announcing on Twitter fictional plans to take the publicly listed car company private. The complaint asserts claims on behalf of all investors who purchased Tesla shares at inflated prices – including Tesla short-sellers who were forced to cover positions in response to Mr. Musk’s misstatements, and suffered losses after the truth behind Mr. Musk’s supposedly ‘secure’ financing was exposed.
Former federal prosecutor and Labaton Sucharow partner Michael Canty, who has been widely quoted by major media organizations, including CNBC, The New York Post and Reuters on the class action lawsuit, states that Mr. Musk’s tweets “appear to be a textbook case of securities fraud.”
If you purchased, sold, or otherwise transacted in Tesla securities during the Class Period, you are a member of the “Class” and have until October 9, 2018 to seek appointment as Lead Plaintiff. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at email@example.com.
A copy of the complaint can be obtained here.