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Super Micro Computer
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Tesla
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NVIDIA
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MicroStrategy
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MARA Holdings
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JP Morgan, Tesla, resolve a dispute from 3 years ago regarding new stock options.
2024/11/30 14:46
JP Morgan Chase & Company (NYSE: JPM) has decided to withdraw the lawsuit against Tesla Inc (NASDAQ: TSLA), which centered on the breach of contract related to the new stock options that occurred in 2014.
What happened: According to Reuters, this resolution was revealed through documents filed with the Manhattan court, indicating that both parties have agreed to withdraw their claims against each other.
In the lawsuit filed by JP Morgan in November 2021, a demand of 0.1 billion 62.2 million dollars was made. The bank claimed that Tesla breached the contract after CEO Elon Musk proposed taking Tesla private at $420 per share in 2018.
According to JP Morgan, this post led to significant fluctuations in the stock price, necessitating adjustments to the exercise price of the new stock options.
What happened: According to Reuters, this resolution was revealed through documents filed with the Manhattan court, indicating that both parties have agreed to withdraw their claims against each other.
In the lawsuit filed by JP Morgan in November 2021, a demand of 0.1 billion 62.2 million dollars was made. The bank claimed that Tesla breached the contract after CEO Elon Musk proposed taking Tesla private at $420 per share in 2018.
According to JP Morgan, this post led to significant fluctuations in the stock price, necessitating adjustments to the exercise price of the new stock options.
JP Morgan argued that the warrant price needed to be reset in this post, and Tesla's failure to compensate for the subsequent increase in stock price led to the lawsuit.
Tesla countersued in January 2023, accusing JP Morgan of attempting to 'hit the jackpot' through price adjustments. The terms of the settlement remain undisclosed.
Tesla countersued in January 2023, accusing JP Morgan of attempting to 'hit the jackpot' through price adjustments. The terms of the settlement remain undisclosed.
Why is it important: The origins of this courtroom battle can be traced back to Elon Musk's post in August 2018. Elon Musk claimed to be considering taking Tesla private at $420 per share, citing secured funding.
As a result, Tesla's stock price soared, leading to a series of events including charges of securities fraud against Musk by the SEC.
The lawsuit filed by JP Morgan in November 2021 was a direct result of the financial impact of Mr. Mask's post. With this settlement, the long-standing legal dispute that investors and industry observers have been carefully watching has come to an end.
Price Trends: Tesla's stock rose 3.7% to $345.16 on Friday. According to Benzinga Pro data, the stock has risen nearly 39% year-to-date.
As a result, Tesla's stock price soared, leading to a series of events including charges of securities fraud against Musk by the SEC.
The lawsuit filed by JP Morgan in November 2021 was a direct result of the financial impact of Mr. Mask's post. With this settlement, the long-standing legal dispute that investors and industry observers have been carefully watching has come to an end.
Price Trends: Tesla's stock rose 3.7% to $345.16 on Friday. According to Benzinga Pro data, the stock has risen nearly 39% year-to-date.
The consensus rating for Tesla stock is 'hold'. The highest price target is $400, with a consensus price target of $232.20, suggesting a 33% decrease.
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