STEVENSON, Md., Aug. 27, 2018 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that several class action lawsuits have been commenced in the United States District Court for the Northern District of California on behalf of investors, including investors who held short positions in Tesla, Inc. (Nasdaq: TSLA) (“Tesla” or the “Company”) stock or who owned Tesla puts on August 7 (beginning at 12:48 p.m. eastern time) or August 8 and investors who purchased Tesla publicly traded securities during the period between August 7, 2018 to August 14, 2018, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until October 9, 2018 to seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Tesla securities during the Class Period. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.
The complaints accuse the defendants of violations of the Securities Exchange Act of 1934 by virtue of Elon Musk’s August 7 statement of an intention to take Tesla private and that funding had been secured and of the later revelation that such funding had not been secured.
According to the complaints, following Elon Musk’s August 7 statement that he had secured funding to take the Company private, the value of Tesla shares rose until it was revealed on August 8, 2018 that the U.S. Securities and Exchange Commission (“SEC”) had made inquiries to Tesla regarding Musk’s statement. At least one of the complaints asserts that investors who covered open short positions and/or who bought back open put positions during that brief period between Musk’s statement and the revelation the next day of the SEC’s interest, may have claims.
According to the complaints, following the August 8, 2018 statement by Tesla’s Board revealing that the transaction was still being evaluated and could be rejected, and the additional reports on August 8 that the SEC had made inquiries, Tesla shares declined substantially. The complaints allege that following an August 9, 2018 report of an inquiry by the SEC, an August 9, 2018 report that the Board was planning to meet and refuting that funding was secured, an August 13, 2018 announcement that funding was not secured and there was no binding term sheet, and an August 14, 2018 report that neither Goldman Sachs nor Silver Lake were yet working with Musk as financial advisors pursuant to any signed agreement or in any official capacity relating to taking the Company private, the value of Tesla shares declined significantly.
If you have suffered a loss in excess of $100,000 from covering short positions in Tesla stock or from the sale of open Tesla puts on August 7 or 8, 2018 or from investment in Tesla securities purchased on or after August 7, 2018 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please contact Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616.
Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616 hoffman@browerpiven.com
