- The judge overseeing the trial between Tesla and shareholders is postponing the trial because of the coronavirus, according to a report by CNBC .
- Shareholders allege in the suit that Tesla improperly acquired solar panel company SolarCity and paid an inflated price for it.
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REUTERS/Steve Nesius
The trial involving Tesla and shareholders who allege the company improperly acquired a solar panel company at an inflated price in 2016 will reportedly be delayed because of the coronavirus.
The judge, Vice Chancellor Joseph Slights of the Delaware Court of Chancery, said on Friday he would be delaying the trial because of the virus, according to a report by CNBC . The trial was set to start next week and run for around two weeks.
"We are expecting that more than 100 people may well gather in connection with this trial," Slights said, according to the report, after Delaware's governor declared a state of emergency and banned non-essential gatherings of over 100 people.
"And while I certainly would not characterize this trial, or any other trial, as 'non-essential,' it is not expedited and no irreparable harm will flow from an adjournment," Slights said.
The case involves allegations by shareholders that Tesla acquired solar panel company SolarCity for an inflated price of $2.6 billion in 2016. SolarCity was founded by Musk's cousins.
Immediately following the deal, the company was found to be insolvent by its auditors. Shareholders allege that the deal was an improper bailout of a failing company.
Tesla did not immediately respond to a request for comment, but previously told Business Insider that "these allegations are based on the claims of plaintiff's lawyers looking for a payday, and are not representative of our shareholders who support our mission and ultimately voted in favor of the acquisition."
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SEE ALSO: Angry shareholders accused Elon Musk of using Tesla and SpaceX to bail out his cousins' solar company for $2.6 billion