NEW YORK, Aug. 2, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of SolarCity Corporation ("SCTY" or the "Company") in connection with the proposed acquisition of the Company by Tesla Motors Inc. ("Tesla"). On August 1, 2016, Tesla announced that it had reached a definitive agreement to acquire all outstanding shares of SCTY in a transaction valued at approximately $2.6 billion. Under the terms of the agreement, SCTY shareholders will receive 0.11 of a share of Tesla for each SCTY share they own; representing a value of $25.30 per share based on Tesla's August 1 closing price.
WeissLaw is investigating whether SCTY's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the current offer price is lower than the original range of $26.50- $28.50 that Tesla proposed in June, and is significantly lower than the analyst target price of $50.00 and the Company's 52-week high of $61.72. Moreover, the acquisition of SCTY, the largest and fastest-growing company in the U.S. residential solar market, will enable Tesla to position itself as the world's only integrated sustainable energy company. Additionally, SCTY's large installation team will expand Tesla's presence in more than a dozen states by installing electric-car chargers in those territories.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell SCTY and whether SCTY shareholders will obtain their fair and proportionate share of the Company's continued success and future growth prospects. If you own SCTY shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP