The image is from ODD ANDERSEN.
A Delaware judge has sided with Musk in a lawsuit that accused the executive of coercing the electric vehicle company's board into buying SolarCity.
The shareholders alleged that the SolarCity deal amounted to a rescue from financial distress and was orchestrated by Musk. The court found that Musk was more involved in the process than a conflicted fiduciary should be, but it still ruled in favor of the technoking. Shareholders can still file an appeal.
Musk's connections to Solar City ran deep at the time of the deal. The unprofitable solar energy firm was co-founded and co-led by Musk's first cousins, Lyndon and Peter, and Musk was Solar City's largest shareholder and chairman.
The Vice Chancellor's opinion shows that the Acquisition was approved by the Board of Directors.
The court decided not to force the shareholders to cover Musk's legal fees. Had he followed the ground rules of good corporate governance in conflict transactions, the case would have been avoided.
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