JPMorgan Chase has submitted a $162 million lawsuit alleging Tesla reneged on a stock warrant deal soon after the financial commitment agency reduced the strike cost.

The fit for breach of the 2014 deal settlement facilities on a dispute above JPMorgan’s re-pricing of the warrants in 2018 as a final result of Tesla CEO Elon Musk’s infamous tweet that he was considering getting the carmaker non-public.

Even though JPMorgan claims it acted properly less than the “announcement celebration protection” clause of the settlement when it made two adjustments to the strike cost, Tesla has claimed the re-pricing was “unreasonably swift and represented an opportunistic  attempt to choose advantage of improvements in volatility in Tesla’s stock.”

Tesla has “flagrantly overlooked its clear contractual obligation” by failing to settle the warrants at the modified strike cost when they expired earlier this calendar year, JPMorgan states in its grievance.

According to Reuters, “It is unconventional for a significant Wall Road bank to sue these a substantial-profile client, though JPMorgan has performed rather minimal small business with the electric carmaker above the earlier seven a long time.”

Musk’s Aug. 7, 2018, tweet stating “Am considering getting Tesla non-public at $420. Funding secured,” was unconventional, triggering a U.S. Securities and Trade Fee investigation and a course action alleging he defrauded shareholders.

JPMorgan reacted by reducing the warrant strike cost from the authentic $560.sixty four to $424.sixty six, citing a regular clause in the deal settlement that protected the functions from the financial results on the warrants of announcements of major corporate transactions involving Tesla.

The financial results of the Musk tweet “substantially diminished the benefit of the warrants,” the fit alleges.

Following Tesla declared on Aug. 24, 2018, in a site write-up attributed to Musk that it was abandoning the going-non-public proposal, JPMorgan modified the strike cost yet again, boosting it to $484.35.

Tesla, on the other hand, protested that no adjustment need to be required at all because it had so immediately abandoned its going-non-public designs, renewing its objections soon after the functions started settlement talks.

“We have presented Tesla numerous possibilities to fulfill its contractual obligations, so it is unfortunate that they have pressured this concern into litigation,” a spokesperson for JPMorgan claimed.

Elon Musk, JPMorgan Chase, stock warrants, strike cost, Tesla