financetom
Business
financetom
/
Business
/
Elon Musk won $56 billion payday because of vote, Tesla argues in court
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Elon Musk won $56 billion payday because of vote, Tesla argues in court
Jun 27, 2024 11:28 AM

WILMINGTON, Delaware (Reuters) -Tesla is claiming Elon Musk won his legal battle over his $56 billion pay package because shareholders voted for the compensation, despite a judge rescinding it earlier this year, according to court filing made public on Friday.

The company's filing comes two weeks after Tesla shareholders voted to ratify the 2018 package of stock options. Tesla held the vote following a January ruling by a Delaware judge to void the compensation because Musk improperly controlled the negotiation process and the company misled shareholders about key details.

The uncertainty in the case hangs over Musk's relationship with Tesla, which is struggling with slower sales and stiffer competition. He has said he might develop some products outside the company if he does not obtain a larger ownership stake.

Tesla made its argument in its proposal for how the judge, Chancellor Kathaleen McCormick of Delaware's Court of Chancery, should craft a final order that is needed to implement the January ruling. Tesla said the final order should state that "judgment is entered for the defendants."

The shareholders' legal team wants the judge to stick with her original ruling voiding Musk's pay package. They want her to order Tesla to pay them potentially billions of dollars worth of Tesla stock as a legal fee award.

Tesla's has said a fair fee might be as low as $13.6 million.

On Thursday, McCormick ordered the parties to begin preparing briefs laying out their views on the effect of the shareholder vote on the case. She also asked the parties to agree on a date in late July or early August for oral arguments on the issue.

McCormick will hear oral arguments over the legal fee on July 8 and she might take at least a few weeks before ruling.

Even if she does not reverse her January ruling, she might recognize that the shareholder vote demonstrated that there was little value in winning the case because Tesla shareholders want the record-breaking compensation. That would undermine the plaintiff's attorneys fee request, which is based on the value they provided to the company by rescinding the pay package.

(Editing by Josie Kao)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
dynaCERT Nearer 52 Week Lows As Closes $5 Million Non-Brokered Equity Offering
dynaCERT Nearer 52 Week Lows As Closes $5 Million Non-Brokered Equity Offering
Jul 2, 2025
03:30 PM EDT, 07/02/2025 (MT Newswires) -- dynaCERT (DYA.TO) was slightly lower and nearer 52 week lows Wednesday after closing its previously announced non-brokered private placement offering of units, issuing 33.33 million units at a price of $0.15 each for aggregate gross proceeds of up to $5 million. According to a company statement, each unit is comprised of one common...
Sector Update: Consumer
Sector Update: Consumer
Jul 2, 2025
03:30 PM EDT, 07/02/2025 (MT Newswires) -- Consumer stocks were advancing late Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) rising 0.1% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.8%. In corporate news, Uber ( UBER )-backed (UBER) startup Moove is close to raising $1.2 billion in a debt round, which would fund the...
MARA Holdings Stock Is Moving Higher Wednesday: What's Going On?
MARA Holdings Stock Is Moving Higher Wednesday: What's Going On?
Jul 2, 2025
MARA Holdings, Inc. ( MARA ) shares are trading higher Wednesday, along with other crypto-linked stocks, amid a rise in the price of Bitcoin (CRYPTO: BTC). The Details: Bitcoin mining stocks are rising Wednesday as Bitcoin moves higher. Bitcoin was last up about 3.65% over a 24-hour period, trading at approximately $109,500 at the time of publication, according to Benzinga...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved