The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Tesla Motors Inc (NASDAQ:TSLA) was launched concerning potential breaches of fiduciary duties by certain directors and officers of Tesla Motors Inc.
Investors who are current long term investors in Tesla Motors Inc (NASDAQ:TSLA) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in Tesla Motors Inc (NASDAQ:TSLA) stocks follows a lawsuit filed recently against Tesla Motors over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:TSLA stocks, concerns whether certain Tesla Motors officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Northern District of California the plaintiff alleges that Tesla Motors Inc violated the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the plaintiff alleges that between May 10, 2013 and November 6, 2013 defendants made allegedly false and misleading statements and allegeldy failed to disclose material adverse facts about the Tesla Motors Inc’s business, including that Tesla Motors Inc’s statements about the Model S’s highest safety rating and its lack of prior fire incidents were materially misleading, due to undisclosed puncture and fire risks in its undercarriage and lithium ion battery pack, that the Model S suffered from material defects which caused the battery pack to ignite and erupt in flames under certain driving conditions, that Tesla Motors Inc’s future sales, its next generation Model X introduction, and its stock price were extremely vulnerable to the inherent risk posed by the Model S’s undercarriage and battery pack design flaws, that Tesla Motors Inc’s was unable to maintain a level of automobile deliveries sufficient to satisfy analyst concerns and compensate for other declining revenue streams, and that as a result of the foregoing, Tesla Motors Inc’s public statements were materially false and misleading at all relevant times.
In October 2013, a Model S burst into flames following a purported collision, with Tesla Motors Inc later admitting that the fire began in its battery pack. Shares of Tesla Motors Inc (NASDAQ:TSLA) declined from over $194 per share in late September to $168.26 per share on Oct. 3, 2013.
In November 2013, Tesla confirmed a third Model S fire, caused by impact with road debris during normal driving conditions. NASDAQ:TSLA shares declined from $179.70 per share on November 5, 2013, to $132.60 per share on Nov. 8, 2013.
Those who purchased shares of Tesla Motors Inc (NASDAQ:TSLA) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com