Fire hysteria lawsuit fizzles out

Shareholder lawsuit TeslaMondoRemember the shareholder suit filed shortly after the fire hysteria in fall 2013? The one that claimed Tesla snookered shareholders by failing to disclose some fundamental design defect that leads to fires, and so the share price suffered and people lost money, blah blah blah? It’s going nowhere. US District Judge Charles Breyer says there’s zero basis for such a case. “I’m at a total—I mean total—loss understanding the basis for this lawsuit,” Breyer said. “Tesla said that this car was found to be one of the safest cars ever developed. That seems to be the case. There’s no evidence that that’s not true.” Remember, the day that suit was filed, TSLA was trading at only $137. Anyone who panic-sold last year deserves not just the judge’s rebuke, but also an hour of standing in the corner, wearing a dunce cap.

A similar suit was filed just a few months ago. It’s likely headed for the same (s)crap heap.

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