Tesla Files a Countersuit Against JPMorgan
Tesla’s months-long legal fund has revealed that the company has countersued JP Morgan in its latest development. The company filed the counterclaim against the bank in response to JPMorgan’s lawsuit last year claiming that the company had breached a 2014 contract regarding stock warrants.
JPMorgan received billions of dollars worth of shares from Tesla’s common stock at a bargain price. JPMorgan is seeking to extract an additional nine-figure windfall from Tesla at a bargain price that both parties negotiated in 2014.
JPMorgan has mentioned in its lawsuit that Tesla sold warrants to the bank that would pay if the strike price was lower than the share price of Tesla upon expiration. When Tesla gave up the plans of taking the company private, JPMorgan adjusted the strike price once again. Tesla called this move of the institutions opportunistic.
The Securities and Exchange Commission charged Elon Musk with securities fraud for his tweet. The Tesla CEO finally reached a settlement with the agency under which Elon Musk and Tesla each pay a $20 million fine. It also asked Elon Musk to step down as chairman of Tesla’s board for three years. In its lawsuit, Tesla has said that the company seeks unspecified damages and a dismissal of JPMorgan’s lawsuit.