US Court Rejects Elon Musk’s $55.8 Billion Tesla Compensation Deal

A US judge, Chancellor Kathaleen McCormick has declined Elon Musk’s massive $55.8 billion compensation package at Tesla.

In the court filing at Delaware’s Court of Chancery, McCormick ruled that Tesla’s attempt to ratify Musk’s compensation package through a June shareholder vote could not override her January decision striking down the package as excessive and unfair to shareholders.

According to the Judge, multiple flaws were found in Tesla’s ratification attempt, including “material misstatements” in documents provided to shareholders about the effect of their vote.

“The motion to revise is denied,” McCormick wrote.

“The large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law,” she added.

In a statement on Musk’s X social media platform, Tesla said it would appeal the verdict.

“Shareholders should control company votes, not judges,” said Musk, in a separate post.

AFP