Judge sides with Elon Musk in lawsuit over SolarCity

• The group of financiers, which includes union pension plan funds and also other institutional investors, argued that SolarCity was a failing enterprise that dealt with "likely bankruptcy" were it except the activities of Musk and also other Tesla board members, who also had large equity risks in SolarCity.

A judge in the state of Delaware on Wednesday handed Tesla chief Elon Musk a victory in a shareholder lawsuit filed over the controversial buy of photovoltaic panel manufacturer SolarCity.

The judge ruled versus a team of Tesla shareholders that contended that Musk, who was chairman of both Tesla and also SolarCity at the time of the transaction, "infected" Tesla's ability to rather assess the purchase, wasting company assets in the $2.6 billion offer as well as hurting people that possessed Tesla stock, according to a grievance.

The judge wrote in his decision that evidence suggested Tesla paid a "reasonable cost" for SolarCity and has gained from the acquisition.

The team of financiers, which includes union pension plan funds as well as other institutional financiers, argued that SolarCity was a failing enterprise that dealt with "likely bankruptcy" were it not for the actions of Musk and other Tesla board members, who likewise had big equity stakes in SolarCity.

The shareholders that filed the suit had formerly reached a $60 million settlement with various other Tesla supervisors initially named in the grievance, with the settlement coming from insurance. This group, that included Kimbal Musk, Elon Musk's brother, did not admit fault.

A crucial inquiry in the trial was whether Musk, that held 22 percent of Tesla's equity at the time, regulated the transaction, which won approval from Tesla shareholders.

Musk informed the court that getting SolarCity became part of his "master plan," according to CNBC.

Dan Ives, analyst at Wedbush Securities, stated during the program of the trial that Wall Street was seeing "extremely carefully to see the outcome for Musk and the corporate governance."

The SolarCity bargain has actually been a "shiner" for Musk and also Tesla and also a "clear low light" in the business's speedy increase, Ives claimed in a note late last year.