JPMorgan Chase & Co and Tesla Inc have finally put their legal battle to rest. Both sides have agreed to drop their claims. This ends a bitter dispute that lasted over two years and grabbed headlines in the financial world.
The feud began in 2021 when JPMorgan sued Tesla over a 2014 stock warrant deal. The bank demanded $162 million, claiming Tesla owed cash or shares. The warrants were designed to protect Tesla from stock dilution caused by convertible notes. They also secured tax benefits for the company.
The Musk Tweet That Sparked Chaos
The fight escalated in 2018 after a controversial tweet by Tesla CEO Elon Musk. Musk stated he was considering taking Tesla private at $420 per share and claimed he had “funding secured.” The announcement sent Tesla’s stock into a frenzy.
JPMorgan responded by adjusting the strike price of the warrants. The bank argued it had the right to do so due to the market volatility. Tesla fired back, accusing JPMorgan of manipulating the terms for profit. Tesla argued this move breached their contract.
A Quiet Conclusion
On Friday, the case officially ended. A court document confirmed that both sides decided to withdraw their lawsuits. No details about a settlement were disclosed.
This development follows a key ruling in September by US District Judge Paul Gardephe. The judge rejected JPMorgan’s attempt to dismiss Tesla’s counterclaims. The case, JPMorgan Chase Bank v. Tesla Inc., was heard in the Southern District of New York.
Both companies have remained silent about the settlement. Their legal teams have also declined to comment.
What’s Next for JPMorgan?
As JPMorgan’s name returns to the spotlight, investors are questioning its value. Is the stock undervalued? InvestingPro’s analysis suggests that, while promising, JPMorgan might not be the top pick for those seeking hidden gems with big growth potential.
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