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Elon Musk (center) with his cousins and SolarCity cofounders Lyndon Rive (left) and Peter Rive (right) in 2010.
Elon Musk (center) with his cousins and SolarCity cofounders Lyndon Rive (left) and Peter Rive (right) in 2010.Mark Von Holden/AP Images for SolarCity
  • Musk won a shareholder lawsuit over the acquisition of SolarCity.

  • SolarCity was $3 billion in debt when Musk bought it.

  • Although the acquisition process was far from perfect, the price was fair.

The judge ruled that Musk did not act in a way that was illegal when he bought SolarCity.

The acquisition was the subject of a shareholder lawsuit that accused Musk of bailing out SolarCity, which was $3 billion in debt. Lyndon and Peter Rive were cousins of Musk.

When the acquisition took place, Musk sat on the boards of both companies.

The price that was paid for SolarCity was fair, and Musk did not violate his fiduciary duty to the shareholders, according to a judgement by the Vice Chancellor.

Musk was more involved in the process than a conflicted fiduciary should be, and the board's process was far from perfect, but that ultimately the vetting process had been sufficient.

Elon did not stand in the way.

If Musk had lost, he would have been on the hook for more than $2 billion.

The lawsuit against the entire board of the company was originally filed but the other board member settled out of court for $60 million. Musk took the stand in court in July 2021.

Rudy told The Wall Street Journal that they were considering their options.

The original article is on Business Insider.

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