Shareholders File Suit Over Tesla/SolarCity Deal

(RTTNews) - Tesla Motors Inc. (TSLA) expects its acquisition of SolarCity Corp. to be delayed by four shareholder lawsuits.

According to Tesla, four lawsuits were filed this month by two individuals and two pension funds accusing Tesla for failing to carry out fiduciary duties involving the proposed merger.

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

Elon Musk is the CEO of Tesla and Chairman of SolarCity and he owns about 20 percent stake in both companies.

"Simply because someone uses litigation to try to delay an acquisition does not mean it will be successful. At this point, it is not yet known if anyone will even end up pursuing such a request. If anyone does, Tesla will oppose it," Tesla said according to WSJ.