Tesla Shareholder Seeks to Block Musk From Litigating Pay Outside of Delaware

Reuters04-24

WILMINGTON, Delaware, April 24 (Reuters) - A Tesla investor who successfully sued to void Musk's $56 billion pay package has asked a Delaware judge to keep the lawsuit in the state, after the company asked shareholders to approve moving the electric vehicle maker's legal home to Texas.

Richard Tornetta's legal team on Wednesday asked the Delaware judge who voided Musk's pay to rule on his request before the June 13 shareholder meeting.

Tesla investors at the meeting will vote on moving the company's legal home out of Delaware and on approving Musk's 2018 pay package.

In January, a Delaware Court of Chancery judge voided the pay package, which Tesla estimated is worth up to $56 billion, calling it "unfathomable."

Musk has criticized Delaware and its courts following the ruling and has said the state, which is home to a majority of large publicly traded corporations, is trying to prevent companies from leaving.

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Comments

  • Dr Rck
    04-24
    Dr Rck
    Wow $56 billion pay package, that's a chunk out of the overall investment, imagine another couple of years later, this will be requested again with a higher amount - provided TSLA can show marked improvements from what it has been today which is not going to happen anytime soon? Do you think that's too much of him to ask or is it the way it should be? 
    • Dr Rck: 
      Or do you think he wants to get back his money for what he has paid to buy twitter now known as X? Or he has to repay the money to the bank to release his share at TSLA used as collateral? Hm..
  • AlanTLK
    04-24
    AlanTLK
    FukReuters again
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