Tesla Inc.’s $2.6 billion acquisition of SolarCity in 2016 was “entirely fair” to shareholders, Delaware’s top court ruled, upholding the dismissal of an investor lawsuit and sparing Elon Musk from a potential multibillion-dollar hit.
The Delaware Supreme Court on Tuesday ruled that negotiations over the deal “were conducted at arm’s-length, in good faith, with the advice of independent financial and legal advisors, led by an indisputably independent director, and, thus, constituted a fair process that led to a fair price.”
Tesla shares rose as much as 1.5 percent after the news and were up 1.2 percent at $220.30 at 2:15 p.m. in New York.
Randy Baron, a lawyer for the investors, declined to comment on the decision. Tesla didn’t immediately respond to an email seeking comment.