STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by the Board of Directors of SolarCity Corporation (NASDAQ: SCTY) (“SolarCity” or the “Company”) relating to the proposed buyout of SolarCity by Tesla Motors, Inc.
Under the terms of the agreement, SolarCity shareholders are anticipated to receive 0.110 shares of Tesla common stock for each share of SolarCity common stock they held. Based on Tesla’s closing stock price on July 29, 2016, SolarCity shareholders would have received compensation valued at approximately $25.67 per share. The transaction may undervalue the Company and would result in no real gain or a loss for many shareholders of SolarCity, especially given that the Company’s 52-week high is $61.72.
The firm’s investigation seeks to determine, among other things, whether the Company’s Board of Directors failed to satisfy their duties to shareholders, including whether the Board adequately pursued alternatives to the acquisition and whether the Board obtained the best price possible for the Company’s shares of common stock. For example, according to Yahoo! Finance, at least one Wall Street analyst has issued a price target for SolarCity stock at $50.00 per share.
If you currently own common stock of SolarCity and believe that the proposed buyout price is too low, or you would like to learn more about the investigation being conducted by Brower Piven, please visit our website at http://www.browerpiven.com/currentinvestigations.html. You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s.