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Court upholds judge’s finding that Tesla acquisition of Solar City was fair
Attorneys News |
2023/06/06 17:10
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Delaware’s Supreme Court has upheld a judge’s decision in favor of Tesla CEO Elon Musk in a lawsuit challenging the electric car maker’s $2.4 billion acquisition of a solar panel company founded by two of his cousins.
The court on Tuesday rejected arguments from a group of Tesla shareholders that a Chancery Court judge erred in finding that Tesla’s deal to acquire SolarCity in 2016 was “entirely fair.” The judge made that determination even while finding that the process by which Tesla’s board of directors negotiated and recommended the deal to shareholders was “far from perfect.”
While noting errors in the trial court’s fair price analysis, and agreeing that the deal process was not “pitch perfect,” the justices said the record is replete with factual findings and credibility determinations indicating that the acquisition was “entirely fair.”
“We are convinced, after a thorough review of the extensive trial record, that the trial court’s decision is supported by the evidence and that the court committed no reversible error in applying the entire fairness test,” Justice Karen Valihura wrote in the court’s 106-page opinion.
Typically, under Delaware’s “business judgment” rule, courts give deference to a corporate board’s decision-making unless there is evidence that directors had conflicts or acted in bad faith. If a plaintiff can overcome the business judgment rule’s presumption because the deal involved a controlling shareholder or because directors might have been conflicted, the board’s action is subject to an “entire fairness” analysis. That shifts the burden to the corporation to show that the deal involved both fair dealing and fair price.
At the time of the acquisition, Musk owned about 22% of Tesla’s common stock and was the largest stockholder of SolarCity, as well as chairman of its board of directors.
The justices concluded that the findings by former Vice Chancellor Joseph Slights III, which were not challenged by the shareholders, support the conclusion that the overall deal process was the product of fair dealing. The Supreme Court also said that, while Slights failed to explain why and how he relied on Solar City’s stock price on the day the deal was announced, rather than the lower price on the day the deal closed, his fair price analysis did not amount to reversible error.
“The Court of Chancery, after examining all of the expert testimony and fair price evidence, found that the fair price case was not even close,” Valihiura noted.
An attorney for the shareholders argued in March that the Chancery Court judge put too much emphasis on the price Tesla paid for SolarCity, and not enough on the deal process, which the plaintiffs contend was tainted by the failure to appoint an independent committee to negotiate the deal. He also argued that the judge’s analysis of the deal price was flawed and that shareholders who voted to approve the deal were not properly informed, even though the vote was not required under Delaware law. |
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Republicans invoke Soros to steer narrative on Trump probe
Attorneys News |
2023/03/22 18:57
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As former President Donald Trump braces for a potential indictment related to hush money payments made on his behalf during his 2016 campaign, Republicans blasting the case as politically motivated are blaming a frequent target: George Soros.
The 92-year-old billionaire investor and philanthropist — who has been falsely accused of everything from hiring violent rioters to committing election crimes — doesn’t know and didn’t donate directly to the New York prosecutor steering the probe. But that hasn’t stopped Trump and other high-profile Republicans from accusing Manhattan District Attorney Alvin Bragg, who convened the grand jury investigating Trump, of acting on Soros’ behalf.
Trump on Monday used his Truth Social platform to misleadingly claim that Bragg “received in EXCESS OF ONE MILLION DOLLARS” from Soros. Ohio Sen. J.D. Vance tweeted that the prosecutor was “bought by George Soros.” Florida Gov. Ron DeSantis called the case a “manufactured circus by some Soros-DA.”
Experts say the claims exploit a gray area of campaign fundraising, where tenuous connections between PAC donors and the candidates who ultimately receive the funds can be unclear.
Scapegoating Soros, who is Hungarian American and Jewish, also perpetuates deep-rooted false ideas about Jewish people and immigrants to underscore the conspiracy theory that he is a shadowy villain orchestrating world events.
The misleading claims about Soros’ link to the Trump case stem from a real donation the philanthropist made in 2021. Soros gave $1 million to Color of Change PAC, a political group that ran an independent expenditure campaign to support Bragg’s district attorney run.
But Soros spokesman Michael Vachon confirmed the wealthy donor’s contribution to the PAC was not earmarked to be used for Bragg. Soros didn’t donate to Bragg’s campaign directly, and the two have never met in person, by phone or virtually, Vachon said.
Soros’ contribution to Color of Change PAC, which told The Associated Press it supports prosecutors looking to change the criminal justice system, follows a pattern for the investor, who “has made numerous contributions in support of reform-minded prosecutors across the country since 2015,” Vachon said.
Soros wrote in an op-ed in 2022 that he supports these candidates because they invest in changes he supports, including mental health programs and treating drug addiction as a disease instead of a crime. Personally and through another PAC, Soros donated about $4 million to Color of Change PAC between 2016 and 2022, Vachon said.
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Oregon launches abortion hotline offering free legal advice
Attorneys News |
2023/01/26 22:17
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Oregon is launching a new abortion hotline offering free legal advice to callers, moving to further defend abortion access after the U.S. Supreme Court overturned Roe v. Wade last summer and eliminated federal protections for the procedure.
The state’s Department of Justice announced the initiative Monday. It is modeled on similar hotlines launched by the attorneys general of New York and Delaware, as states where abortion remains legal have seen an increase in the number of patients traveling from areas where the procedure has been banned or restricted.
“The Hotline will fill an important need in our state for callers to understand the status of our reproductive health laws, including issues related to abortion access,” Oregon Attorney General Ellen Rosenblum said in a news release. “This is especially important because we share a border with Idaho, which has a near-total abortion ban.”
Abortion remains legal at all stages of pregnancy in Oregon, which has worked with California and Washington to promote the West Coast as a safe haven for the procedure.
People can call the anonymous hotline from any state for free legal advice and receive a call back from a lawyer within 48 hours.
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CAS asked to judge Ecuador case by 10 days before World Cup
Attorneys News |
2022/10/03 19:26
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Sport’s highest court has been asked to judge a case that aims to remove Ecuador from the World Cup by no later than Nov. 10 — just 10 days before the team should face host Qatar in the opening game.
The Court of Arbitration for Sport said it registered appeals by the Chilean and Peruvian soccer federations against a FIFA ruling this month that Ecuador defender Byron Castillo was in fact eligible to play in the eight qualifying games he was selected for.
CAS gave no timetable for appointing judges and organizing a hearing, though said both parties appealing asked for a final award by Nov. 10.
Chile officials claim to have documents proving Castillo is actually Colombian and that Ecuador should forfeit all eight games he played in as 3-0 losses.
That legal argument was dismissed by FIFA’s disciplinary committee in June and upheld by FIFA appeal judges two weeks ago.
Ecuador placed fourth in the South American qualifying group in March and claimed a direct World Cup entry. Days later it was drawn into Group A with Qatar – playing the host on Nov. 20 in Doha -- Netherlands and Senegal.
If the qualifying games were forfeited, the revised points totals would lift Chile to fourth from seventh.
Peru placed fifth and has asked CAS to get Ecuador’s entry as the next highest placed South American team. Peru already lost an intercontinental playoff to Australia in June.
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Wisconsin Supreme Court disallows absentee ballot drop boxes
Attorneys News |
2022/07/07 00:05
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Wisconsin’s conservative-controlled Supreme Court ruled Friday that absentee ballot drop boxes may be placed only in election offices and that no one other than the voter can return a ballot in person, dealing a defeat to Democrats who said the decision would make it harder to vote in the battleground state.
However, the court didn’t address whether anyone other than the voter can return his or her own ballot by mail. That means that anyone could still collect multiple ballots for voters and, instead of using a drop box, put them in the mail.
Republicans have argued that practice, known as ballot harvesting, is ripe with fraud although there has been no evidence of that happening in Wisconsin. Democrats and others argue that many voters, particularly the elderly and disabled, have difficulty returning their ballots without the assistance of others.
Supporters argue drop boxes are a better option than mailing ballots because they go directly to the clerks and can’t be lost or delayed in transit.
The decision sets absentee ballot rules for the Aug. 9 primary and the fall election; Republican U.S. Sen. Ron Johnson and Democratic Gov. Tony Evers are seeking reelection in key races.
Johnson and other Republicans hailed it as a win for voter integrity.
“This decision is a big step in the right direction,” Johnson said.
Evers and other Democrats said the ruling will make it more difficult for people to vote.
“It’s a slap in the face of democracy itself,” said Democratic Party Chairman Ben Wikler.
The court’s 4-3 ruling also has critical implications in the 2024 presidential race, in which Wisconsin will again be among a handful of battleground states. President Joe Biden defeated Donald Trump in 2020 by just under 21,000 votes, four years after Trump narrowly won the state by a similar margin.
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States brace for fight over gun laws after high court ruling
Attorneys News |
2022/06/24 23:46
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The Supreme Court’s decision overturning a gun-permitting law in New York has states with robust firearms restrictions scrambling to respond on two fronts — to figure out what concealed-carry measures they might be allowed to impose while also preparing to defend a wide range of other gun control policies.
The language in the court’s majority opinion heightened concern that other state laws, from setting an age limit on gun purchases to banning high-capacity ammunition magazines, may now be in jeopardy.
“The court has basically invited open season on our gun laws, and so I expect litigation across the board,” said New Jersey acting Attorney General Matt Platkin, a Democrat. “We’re going to defend our gun laws tooth-and-nail because these gun laws save lives.”
The court ruling issued Thursday specifically overturned a New York law that had been in place since 1913 and required that people applying for a concealed carry permit demonstrate a specific need to have a gun in public, such as showing an imminent threat to their safety. The court’s conservative majority said that violated the Second Amendment, which they interpreted as protecting people’s right to carry a gun for self-defense outside the home.
While the ruling does not address any other laws, the majority opinion opens the door for gun rights advocates to challenge them in the future, said Alex McCourt, the director of legal research for the Johns Hopkins Center for Gun Violence Solutions.
Pro-firearms groups in several states said they plan to do just that.
Attorney Chuck Michel, president of the California Rifle and Pistol Association, said the group is preparing to expand its legal challenges based on the high court changing the legal standard used to assess whether gun control laws are constitutional.
Courts must now consider only whether a gun control regulation is consistent with the Second Amendment’s actual text and its historical understanding, according to Thursday’s ruling. Before that, judges also could consider a state’s social justification for passing a gun control law.
Michel said the standard will affect three prominent California laws. Legal challenges to the state’s limits on assault weapons, its requirement for background checks for buying ammunition and its ban on online ammunition sales are pending before a federal appellate court.
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Supreme Court sides with government in immigration case
Attorneys News |
2020/04/26 20:31
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The Supreme Court is making it harder for noncitizens who are authorized to live permanently in the United States to argue they should be allowed to stay in the country if they've committed crimes.
The decision Thursday split the court 5-4 along ideological lines. The decision came in the case of Andre Barton, a Jamaican national and green card holder. In 1996, when he was a teenager, he was present when a friend fired a gun at the home of Barton's ex-girlfriend in Georgia. And in 2007 and 2008, he was convicted of drug possession in the state.
His crimes made him eligible to be deported, and the government sought to remove him from the country in 2016. Barton argued he should be eligible to stay. Justice Brett Kavanaugh noted in his opinion for the court's conservatives that it was important that Barton's 1996 crime took place in the first seven years he was admitted to the country.
Kavanaugh wrote that “when a lawful permanent resident has amassed a criminal record of this kind,” immigration law makes them ineligible to ask to be allowed to stay in the country. |
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