Labaton Sucharow LLP has filed a securities class action lawsuit in San Francisco federal court on behalf of its client Andrew E. Left of Citron Research against Tesla, Inc. (NASDAQ: TSLA) and its Chief Executive Officer Elon Musk, alleging that Mr. Musk artificially manipulated the price of Tesla stock by taking to Twitter to announce fictional plans to take the publicly listed car company private.
The action, which is captioned Left v. Tesla, Inc., No. 18-cv-5463 (N.D. Cal.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission (SEC) Rule 10b-5 promulgated thereunder, on behalf of all persons other than Defendants who purchased, sold, or otherwise transacted in Tesla securities between August 7, 2018 and August 17, 2018, inclusive (the Class Period).
The complaint asserts claims on behalf of Tesla short-sellers forced to cover positions in response to Musks market manipulation at a loss. The action also includes all investors that purchased Tesla shares at inflated prices and suffered losses after the truth behind Musks supposedly ˜secure financing was exposed. Former federal prosecutor and Labaton Sucharow partner Michael Canty, who has been widely quoted by major news organizations, including CNBC, The New York Post and Reuters on the matter, states that Musks tweets appear to be a textbook case of securities fraud.
The United States Securities and Exchange Commission has opened a formal inquiry into Defendants statements, and recently subpoenaed Defendants as they dig deeper into the factual basis of the going-private transaction.
If you purchased, sold, or otherwise transacted in Tesla securities during the Class Period, you are a member of the Class and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Northern District of California no later than October 9, 2018. 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.
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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 protected].
You can view a copy of the complaint here.