Readers periodically email me with questions along the lines of: “If Elon Musk keeps doing political stuff that alienates Tesla’s customers and pushes down it sales and market value, is that a violation of his fiduciary duty to shareholders?” I suppose the answer is: I dunno, why don’t you sue him in Texas’s new business courts and find out? I…
A Delaware judge on Monday affirmed an earlier ruling that rescinded a giant pay package that Tesla had awarded its chief executive, Elon Musk. The pay, in the form of stock options, was worth more than $50 billion and helped make Mr. Musk the richest person in the world. The package is now worth $100 billion after Tesla’s share price…
A U.S. appeals court on Wednesday upheld a jury’s verdict clearing Tesla CEO Elon Musk and his company of liability over allegations they misled investors when the billionaire posted on social media in 2018 that he had “funding secured” to take the electric car company private. The San Francisco-based 9th U.S. Circuit Court of Appeals rejected arguments by lawyers for…
A Manhattan federal judge may have thought he’d heard the last of a securities class action by dogecoin investors who accused Elon Musk and Tesla of rigging the price of the cryptocurrency when he tossed investors’ fourth amended complaint in late August. Oh how wrong he was. Lawyers for Musk and the dogecoin investors’ class, who have traded vicious barbs…
It’s hard to overstate the stakes for the lawyers who persuaded a Delaware judge to void Tesla founder’s Elon Musk’s $56 billion pay package. The size of the legal fee they are requesting is undoubtedly vast: more than 29 million Tesla shares, valued at $7.74 billion as of Thursday morning’s market opening. And so is the gulf between that sum…
One other question we have: What does the vote mean for the multibillion-dollar fee that the lawyers who have successfully challenged the pay plan in Delaware are seeking? If the presiding judge says the package remains nullified, they’re likely to still get lots of money. If she reverses course, they could be awarded far less — but they would then…
Tesla shareholders’ backing of Elon Musk’s multibillion-dollar compensation package helps clarify his immediate future atop the world’s most valuable automaker. Now the electric-car company has to figure out how to pay him. Musk and Tesla face legal opposition to the stock-option deal that was passed in 2018, now valued at roughly $48 billion. The latest vote is also being challenged…
The head of a massive California pension fund told CNBC on Monday that he is voting against the revised pay package for Tesla CEO Elon Musk. The vote this week is to effectively reinstate a 2018 pay package that was struck down by a judge in January. California State Teachers’ Retirement System Chief Investment Officer Chris Ailman said the fund opposed the…
The legal team that voided Elon Musk’s record Tesla pay package deserves a tiny fraction of the $5.6 billion legal fee they requested because their lawsuit provided almost no benefit for the company, the electric automaker argued in court papers on Friday. Tesla said the legal team for Richard Tornetta, the shareholder whose lawsuit led to a January ruling voiding…
Tesla shareholders will vote on Thursday on whether to restore the mammoth pay package for chief executive Elon Musk that was struck down by a Delaware judge this year. But that is not expected to close the book on a legal saga that has consumed the electric-car maker and the leading US business law court that dared to defy Musk…