A law firm has announced that it has filed a class action lawsuit against Tesla Motors Inc (NASDAQ:TSLA). Levi & Korsinsky is also seeking a lead plaintiff in the case filed on behalf of certain Tesla Motors Inc (NASDAQ:TSLA) investors.
Tesla investors not batting an eye
A quick search of the web reveals a nearly unending list of lawsuits which are very similar the one they have filed against Tesla. Most of the press releases are worded nearly the same. In short, if you’ve heard a controversy of any kind about a company over the last year, Levi & Korsinsky might be suing them. A couple of the biggest names you might have heard of are NQ Mobile Inc (ADR) (NYSE:NQ) and Herbalife Ltd (NYSE:HLF), but there are many more.
Shares of Tesla Motors Inc (NASDAQ:TSLA) rose more than 2% in trading today in spite of the announcement about the lawsuit last night. It would seem that at least for now, this case isn’t enough to scare investors.
Tesla accused of “false and / or misleading statements”
This suit against Tesla alleges that the company made statements which were false or misleading in connection with the safety of the Model S sedan. The case mentions the Model S fires which were caused when the vehicles ran over a piece of metal in the road. The metal punctured the battery compartment, sparking a fire. The firm also alleges that “the Model S suffers from material defects which have caused the battery pack to ignite and erupt into flames under certain conditions.”
One thing that could have bearing on this case is whether the National Highway Traffic Safety Administration decides there are any material defects in the Model S. Tesla already got the green light from German regulators after their investigation into the Model S fires. The NHTSA is still investigating.
Tesla not keeping up with demand
And if you weren’t worried at all about the Model S fires, the firm tacked on another potentially unrelated claim. It said Tesla Motors Inc (NASDAQ:TSLA) “was unable to maintain a level of deliveries sufficient to satisfy analyst concerns and compensate for other declining revenue streams.” (Good grief, if every company got in trouble for disappointing analysts, Wall Street would probably be mighty empty)
Anyhow, investors who want to join the class action suit have until Jan. 7 to request that they be appointed lead plaintiff. The case covers investors who bought shares of Tesla Motors Inc (TSLA) between May 10 and Nov. 6 of this year.