JPMorgan Chase & Co. (NYSE:JPM) has concluded its legal battle with Tesla (NASDAQ:TSLA) Inc., with both parties agreeing to drop their respective claims, according to Bloomberg News.
The dispute, which has been ongoing since JPMorgan filed a lawsuit in 2021, centered around a 2014 stock warrant transaction and was tied to a tweet by Tesla CEO Elon Musk.
The bank had sought $162 million from Tesla, asserting that it was owed shares or cash based on the terms of their agreement. This agreement was put in place to protect Tesla from potential stock dilution resulting from convertible notes and to secure certain tax deductions.
The conflict escalated following Musk's tweet in August 2018, in which he expressed consideration of taking Tesla private at $420 per share, claiming he had "funding secured."
JPMorgan adjusted the strike price of the warrants in response to the tweet and subsequent events, stating it was within its rights to do so due to the volatility of Tesla's stock.
Tesla countered by accusing JPMorgan of manipulating the situation to lower the strike price unjustly, thereby breaching their contract and attempting to secure an unwarranted financial gain.
The mutual decision to withdraw the litigation was made public in a brief court document filed on Friday. The details of any settlement that may have been reached were not disclosed in the filing.
The conclusion of this legal matter follows a September ruling by US District Judge Paul Gardephe, who presides over the Southern District of New York court. Judge Gardephe denied JPMorgan's request for a pre-trial judgment in its favor, which would have dismissed Tesla's counterclaims.
Representatives for both Tesla and JPMorgan, as well as their legal teams, have not provided comments regarding the recent development in the case. The case, formally known as JPMorgan Chase Bank v. Tesla Inc., was being heard in the US District Court for the Southern District of New York.
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