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Tesla CEO Elon Musk has taken on a defiant tone at the trial where he is accused of unfairly pushing through the acquisition of a solar company, according to reports on his testimony.
On Monday, Musk testified in a Delaware Chancery Court as the first witness in a class action lawsuit where he is facing allegations that Tesla Motors Inc. bought SolarCity Corp. for $2.6 billion when it was “troubled,” Law360 reports.
At the opening of the trial, Musk lashed out at Robbins Geller Rudman & Dowd LLP attorney Randall J. Baron, who is representing the plaintiffs, Tesla pension fund stockholders.
“I have great respect for the court, but not for you sir,” Musk reportedly said. “I think you are a bad human being.”
Plaintiffs are demanding Musk repay billions to shareholders. They are accusing the CEO of unfairly using his influence as Tesla’s controlling stockholder to make the deal happen, despite having a personal interest in both Tesla and SolarCity.
Musk was board chairman of SolarCity Corp. when the deal went through, Law360 reports.
During the testimony, Baron questioned Musk on the allegations that he massaged Tesla into buying SolarCity, even though it was in a poor financial state.
But Musk denied that the company was in trouble at the time. He reportedly added that, “while there may be some ups and downs one quarter to the next, I am confident Tesla Solar will become a very big business. I’m certain of it.”
Baron asked Musk about the allegations he forced the deal, even though he was conflicted on both sides.
At the center of the lawsuit is Musk’s level of control over the board. Stockholders in the SolarCity class action lawsuit allege that the 2016 merger was driven by Musk’s roles as Tesla’s CEO, board chairman and 22.1 percent stockholder in early 2016 and by a “complex web of familial and business relationships” with SolarCity.
SolarCity is run by Musk’s cousins, and he has invested $500 million in the company.
The trial begins after Tesla stockholders lost a bid to access depositions taken for another case against Musk early this month, with the court saying the plea came too late. The testimony continues Tuesday.
What do you think about the allegations against Elon Musk in this case? Let us know in the comments.
The stockholders are represented by Jay W. Eisenhofer, Christine M. Mackintosh, Kelly L. Tucker, Vivek Upadhya and Daniel L. Berger of Grant & Eisenhofer PA, Lee D. Rudy, Eric L. Zagar, Justin O. Reliford and Matthew C. Benedict of Kessler Topaz Meltzer & Check LLP, and Randall J. Baron, David T. Wissbroecker and Maxwell R. Huffman of Robbins Geller Rudman & Dowd LLP.
The Tesla SolarCity Investors Class Action Lawsuit case is In re: Tesla Motors Inc. Stockholder Litigation, Case No. 12711, in the Court of Chancery of the State of Delaware.
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