A federal judge has appointed Levi & Korsinsky to lead securities fraud class actions against Tesla Inc., citing ability of the firm’s client, an individual investor who lost $3.5 million, to represent both stock purchasers and short sellers.
In his Tuesday order, U.S. District Judge Edward Chen of the Northern District of California rejected submissions by institutional investors and short seller Andrew Left to be lead plaintiffs in the consolidated lawsuits, which allege that Tesla CEO Elon Musk’s Aug. 7 post on Twitter about taking the electric car company private sent its shares soaring—then, falling—amid questions about the accuracy of his claims. On Sept. 29, Musk agreed to step down as Tesla’s chairman and pay $40 million to settle a U.S. Securities and Exchange Commission lawsuit.
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