Tag: Derivative Actions

Tesla Board Compensation Derivative Suit Settles for $735 Million | The D&O Diary

In what is as far as I know the largest shareholder derivative lawsuit settlement ever as measured by dollar value, the defendant board members in the Tesla Board compensation derivative suit have agreed to settle the case for a combination of payments and transfers with a total value of $735 million. The agreement settles a Delaware Chancery Court lawsuit that…

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Elon Musk Is Out of Control: It’s the General Counsel’s Fault, Suit Alleges | Corporate Counsel

A newly unsealed lawsuit alleging that Tesla Inc.’s board of directors failed to appoint a general counsel who could stand up to controversial CEO Elon Musk highlights the limited options that company counsel have when dealing with difficult bosses. Tesla investor Chase Gharrity alleges, in a derivative suit filed in the Delaware Court of Chancery, that the Palo Alto, California-based…

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Alabama Judge Grants Motion to Freeze Scrushy’s Assets

Yesterday, Jefferson County Circuit Judge Allwin E. Horn granted the HealthSouth shareholders’ motion filed Friday (discussed here) to freeze the assets of HealthSouth Corp. founder Richard Scrushy.  On June 18, the shareholders won a nearly $2.9 billion judgment against Scrushy related to the accounting fraud at the company. The AP reports that the judge’s rulng bars Scrushy from “selling or…

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Step 1: Obtain $2.8 Billion Judgment; Step 2: Seek Asset Freeze

On Friday, attorneys for HealthSouth shareholders asked Alabama Circuit Judge Allwin E. Horn to freeze the assets of former HealthSouth CEO Richard Scrushy, against whom they obtained a massive nearly $2.9 billion judgment last week. One of the attorneys acknowledged that there was no expectation of getting the full judgment from Scrushy, but said that he hoped to eventually collect…

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