Attorneys who argued for Tesla shareholders againt Elon Musk in the legal case that $55.8 billion compensation as CEO of Tesla was “illegal” have now requested that the presiding court grant them more than 29 million (2.9 crore) shares of the firm as “legal fees.” These shares are valued at $5.6 billion.
The motion was made on Friday in a Delaware court, and it will be addressed by Judge Kathleen McCormick. In Jan, Judge McCormick dismissed Tesla’s 2018 salary package for Musk, citing “flawed” procedures and “unfair” pricing.
Tesla Investor’s lawyers Prefer Shares Over Cash in Settlement Appeal
The lawyers for Tesla investor Richard Tornetta, who objected to the Musk’s package, outlined their “unusual” request and the reasons behind their preference for shares over cash in their appeal.
“We’re ready to enjoy our food”, the attorneys argued in the court filing.
The advantage of this arrangement is that it prevents deducting even 1% from Tesla’s balance sheet to cover costs and immediately links the award to the benefit generated. Additionally, Tesla deducts it from taxes, according to their filing.
According to the filing, approximately 267 million (26.7 crore) shares would be restored to the second-largest electric car manufacturer in the world as a result of the investor’s victory, as Tornetta, their client, contested the issue on behalf of the shareholders.
In response to the attorneys’ claim, Musk made the following post on X:
“The attorneys who did nothing but harm Tesla are requesting $6 billion.” Illegal.
The $5.6 billion payout, if approved, would reportedly be by far the greatest of its kind.
According to Delaware law, the billionaire will have 30 days from the time Chief Judge McCormick issues her final conclusion in the matter to determine whether or not to file an appeal.
