Tesla-SolarCity Deal Could Be Delayed By Shareholder Lawsuits

(RTTNews) - Tesla Motors Inc.'s (TSLA) planned merger with SolarCity Corp. (SCTY) faces four lawsuits, one of which seeks an injunction to stop the transaction, potentially holding up a deal until a scheduled hearing on October 18 at the earliest.

Four lawsuits were filed in the Court of Chancery of the State of Delaware between September 1 and September 14,2016, the company said in a regulatory filing.

The suits by four different shareholders all allege that Tesla's executives and board breached their fiduciary duty by entering into the pact because Tesla Chairman Elon Musk and other Tesla insiders hold shares in both companies. Tesla considers the cases to be without merit, according to the filing.

On September 16, 2016, the Court set a schedule for consolidation of the Actions and determination of a plaintiffs' leadership structure, and the Court scheduled a hearing for October 18, 2016, to consider any motion for expedited proceedings. Tesla believes that the Actions are without merit.

The lawsuits were filed by the City of Riviera Beach Pension Fund, Arkansas Teacher Retirement System, and individual shareholders P. Evan Stephens and Ellen Prasinos.