Rejection of Tesla Class Action Shareholder Suit

[bonnie]

I could not read it. They want me to register/sign up.

That was true the first time I tried it. Then I tried googling on the article's title, it came up with the same link - but no paywall.

 

[CatB]

Does that mean Pomerantz has to pay Tesla's legal fees?
Or does Trucillo (sp?) have to wash dishes or sweep the factory floor?

There should be some penalty that acts as a deterrent to this abuse of the legal system.

 

[bonnie]

Does that mean Pomerantz has to pay Tesla's legal fees?
Or does Trucillo (sp?) have to wash dishes or sweep the factory floor?

There should be some penalty that acts as a deterrent to this abuse of the legal system.

Totally agree. Or perhaps we file a class action suit against Pomerantz for wasting Tesla's time with frivolous suits when they should be working on other things.

 

[StephenM]

Totally agree. Or perhaps we file a class action suit against Pomerantz for wasting Tesla's time with frivolous suits when they should be working on other things.

I would chip in to a kickstarter for this :biggrin:

 

[brianman]

Totally agree. Or perhaps we file a class action suit against Pomerantz for wasting Tesla's time with frivolous suits when they should be working on other things.

And while you're at it, roll the court costs for the class action suit into the claim so that taxpayers can get compensation for both suits.

 

[bonnie]

Want lunch with that, too?

 

[brianman]

Want lunch with that, too?

BBQ? And can you bring the band from the picnic? Awesome!

 

[Ames]

I could not read it. They want me to register/sign up.

Not sure what went wrong...here is the text:

SAN FRANCISCO — The accusations centered on electric car fires, but it was the securities suit against Tesla Motors Inc. that crashed and burned Friday in federal court.
Tesla executives didn't cover up fire risks posed by batteries in the company's luxury Model S cars, U.S. District Judge Charles Breyer said, dismissing the complaint without leave to amend. Nor were company statements lauding the cars' safety false, despite three car fires reported in 2013.
"I'm at a total—I mean total—loss understanding the basis for this lawsuit," Breyer said.
Extreme circumstances, including a 100 MPH crash, caused the fires at the heart of the litigation—not a battery defect. In fact, Breyer said, Tesla cars seem to have contributed to the survival of the cars' occupants. In each case, the victims walked away without serious injuries before the cars ignited.
"Tesla said that this car was found to be one of the safest cars ever developed," Breyer said. "That seems to be the case. There's no evidence that that's not true."
Plaintiffs attorney Matthew Tuccillo, a partner in Pomerantz's New York office, countered that Tesla CEO Elon Musk didn't disclose a fire during a factory test "that spun wildly out of control and required 23 first responders."
But Breyer remained unconvinced. "How many fires have occurred with this very dangerous battery" that were not caused by crashes or road debris striking the battery in the car's undercarriage, he asked.
"The answer during the class period and since is zero," said Tesla attorney David Siegel, a partner in Irell & Manella's Los Angeles office. "That risk has never realized."
Tuccillo also accused Musk of misleading shareholders when answering questions about a car battery that ignited in Washington in October 2013. Musk already knew of a second battery fire, but failed to mention it, Tucillo said. But Breyer brushed that off, saying federal securities law doesn't require executives to provide "a stream of consciousness disgorgement about everything everyone knows about everything."


Read more: http://www.therecorder.com/id=12026...rakes-on-Tesla-Shareholder-Suit#ixzz3EfsuVdMg

 

[Curt Renz]

Totally agree. Or perhaps we file a class action suit against Pomerantz for wasting Tesla's time with frivolous suits when they should be working on other things.

I suspect that Tesla Motors is choosing not to countersue despite the frivolous nature of the original suit. I agree that the original suit was frivolous, and a countersuit could win an award. But Tesla Motors may prefer that the arguments presented for the original suit not be dragged up again in the news. Shareholders considering a class action suit against Pomerantz may first want to consult Tesla executives for their opinion of such an effort.