This morning Tesla Motors revealed in a regulatory filing that no less than four lawsuits have been filed so far in September attempting to block the company’s acquisition of SolarCity. The suits were filed by a variety of actors, including the Arkansas Teachers Retirement System, the City of Riviera Beach Police Pension Fund, and two individual investors.
The suits seek material damages and to stop the acquisition, arguing that Tesla has not acted in the best interests of its shareholders, with some additionally claiming that regulatory filings did not disclose important information. All name the Tesla board as defendants, and some additionally name SolarCity executives. On September 8, the plaintiff in one of the suits filed for a preliminary injunction to stop the merger.
Tesla’s proposed acquisition of SolarCity remains controversial, due to both disappointing recent financial results at SolarCity, Elon Musk’s interest in both companies and the familial relationships of Elon Musk and Peter and Lyndon Rive, who are cousins.
Following anti-trust approval by federal regulators in late August, this week Tesla and SolarCity shareholders are both expected to vote on the merger. Elon Musk, the Rive brothers and other key executives of both companies are all recusing themselves from this vote.
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