JPMorgan Chase sued Tesla Monday for $ 162 million
JPMorgan alleges Tesla has “blatantly” violated its terms and conditions relating to stock option warrants, according to a lawsuit filed in New York’s Southern District on Monday.
According to court documents, Tesla sold JPMorgan stock warrants in 2014 and agreed to deliver stock or cash if the stock price was above a set price by the expiration date, with provisions for the bank to like the price in the face of larger corporate transactions. adapt mergers or privatization of the company.
JPMorgan adjusted the value of the warrants when Musk tweeted that he was considering taking Tesla privately and “secured the funding” according to the filing, and adjusted again when Musk withdrew the idea weeks later.
By the time the warrants expired earlier this year, the share price had risen dramatically and was “well above” the exercise price, JPMorgan said, even though Tesla “refused to pay the contractual exercise price.”
Tesla alleged the bank was “inappropriately quick” and “opportunistic” in making adjustments to “take advantage of changes in volatility in Tesla’s stock,” the court documents said.
JPMorgan said it is demanding the more than $ 162 million due, plus expenses and legal fees.