JPMorgan Chase and Tesla dropped their countersuits, ending a legal battle that has dragged on since 2021. Terms of the settlement were not disclosed, but under the terms of the settlement, the companies waived all claims against each other and “without the ability to present them again.”
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“JPMorgan and Tesla have decided to establish a new business relationship and resolve outstanding disputes between the companies,” the bank said in a statement. “This is a good result for everyone and we look forward to working together.”
Initially, the cause of the dispute was violations by Elon Musk’s company regarding payments under the contract, Bloomberg recalls. JPMorgan Chase was seeking $162 million in damages for its “flagrant” violation of bearer share payment conditions.
In 2014, Tesla sold a warrant for 228,775 common shares to the bank. And then, in 2018, a famous scandal occurred with Musk’s statements on Twitter (he allegedly plans to take the company private again and buy back shares). These words contributed to a sharp increase in the company’s values of 11%. The Securities Commission also reacted to this event, accusing the billionaire of deliberately influencing the market.
In the context of this story, the bank decided to adjust the amount of payments due, but Tesla called the adjustments an adventurous attempt to take advantage of the stock’s usual volatility. As a result, in November 2021, JPMorgan Chase decided to officially declare its claims and demands, and Tesla filed a countersuit a few months later, as the WSJ wrote at the time.
Author:
Ekaterina Alipova
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
