By Tesla Inc. Chief Executive Elon Musk didn’t act unlawfully when the electric-vehicle maker took over SolarCity Corp., a judge ruled Wednesday.
A group of Tesla
TSLA,
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shareholders had alleged that Musk controlled the takeover while having a financial interest in both companies, that many of its directors were conflicted and that Tesla overpaid for SolarCity. Musk has said he didn’t dictate the deal process or price and recused himself from the shareholder vote.
“My verdict is for the defense on all claims,” Vice Chancellor Joseph Slights III, the presiding judge in the shareholder lawsuit, wrote in his judgment.
An expanded version of this report appears on WSJ.com.
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