March 9, 2018 / 12:44 AM / 10 months ago

Tesla subsidiary SolarCity defeats securities-fraud appeal in 9th Circuit

A federal appeals court has affirmed the dismissal of a securities-fraud class action by former shareholders of SolarCity Corp, saying the plaintiffs’ factual allegations were insufficient to support their claims that an accounting error in the company’s favor prior to its 2012 IPO was the result of deliberate manipulation.

A unanimous panel of the 9th U.S. Circuit Court of Appeals said that even if the plaintiffs’ allegations were true, they failed to raise the “strong inference” of fraud required for claims under the Private Securities Litigation Reform Act.

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