JPMorgan Chase & Co has sued Tesla Inc for $162.2 million. Tesla is accused of “flagrantly” breaching a contract related to stock warrants.
Legal battle
Tesla sold the warrants to reduce potential stock dilution from a separate convertible bond sale and to lower its federal income taxes
JPMorgan said it had been contractually entitled to adjust the warrants’ terms. This is after “significant corporate transactions involving Tesla”.
“We have provided Tesla multiple opportunities to fulfill its contractual obligations, so it is unfortunate that they have forced this issue into litigation,” a spokesperson for JPMorgan said in a statement.
