Since Monday this week, Tesla CEO Elon Musk has been defending a lawsuit over the 5-year old merger of Tesla and SolarCity. The law firm Robbins Geller Rudman & Dowd LLP has sued Tesla (TSLA) and Elon Musk over the acquisition of SolarCity.
The bits of information that Elon Musk has revealed about this law firm and the lawyers behind this lawsuit in a tweetstorm last night puts some interesting pieces of the puzzle together.
William “Bill” Shannon Lerach was one of the founders and partners of the law firm Robbins Geller Rudman & Dowd LLP, then named Lerach Coughlin Stoia Geller Rudman & Robbins.
A book has been written on Lerach’s career named “Circle of Greed: The Spectacular Rise and Fall of the Lawyer Who Brought Corporate America to its Knees”. The title of the book explains it all, Lerach was a master of class-action lawsuits and the legacy continues till today even after the founder’s guilty plea and imprisonment.
The 2008 New York Times article that Elon Musk has shared in his tweet states:
Mr. Weiss, Mr. Lerach and the law firm that they built together dominated the lucrative field of securities class-action litigation, filing many lawsuits against publicly traded companies on behalf of investors who had lost money when share prices fell.The New York Times: Class-Action Lawyer Gets 30 Months in Prison (June 3, 2008). Source link.
Yes, these lawyers are backed by short-sellers of publicly traded companies, and they have been pleaded guilty for trying to bribe a state judge.
Tesla (TSLA) short-sellers are commonly referred to as $TSLAQ in the Tesla Community and social media sphere. It is not hard to establish a connection between these bad lawyers and TSLAQ in light of the information we discussed above.
The billions of dollars that TSLAQ investors have lost in the last year alone shorting Tesla stock, are now furious and trying their last in a hopeless attempt to recover from the losses.
Musk shared another article that shows how the same law firm was found using a false witness in a case against The Boeing Company in 2014. “Amazingly, all of this quite relevant information is missing from their puff piece Wikipedia page, which has obviously been whitewashed by paid curators,” Elon Musk further stated.
“I don’t think SolarCity was financially troubled,” Musk stated in the court of law on Monday, “In order to have a compelling product, you really needed to have a tightly integrated solar and battery solution. Ane we could not create a well-integrated product if SolarCity was a separate company,” he said.
Because of this useless lawsuit, Elon Musk had to waste 5 hours of his precious time in court on Monday alone. Building rockets and spaceships for Mars and developing a sustainable transportation ecosystem with Tesla electric vehicles, Musk is one of the most important persons on the planet today, dragging him into such wasteful activities is not good for anyone.
Related: Tesla sued Rivian for poaching employees and stealing trade secrets
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