Elon Musk is ready to look again before the Delaware Court Chancery Judge Kathaleen McCormick, the judge who forced the Tesla boss to shut the Twitter takeover deal. The brand new Twitter boss can be defending his alleged paycheck for Tesla of USD 55.8 billion – the most important ever in human history. The trail is ready to start on November 14. Former directors of the corporate will stand trial for handing over Musk a staggering package of $55.8 billion in stock options.
— FORTUNE (@FortuneMagazine) November 2, 2022
The legality of this case has several implications. Mostly a positive one, if there’s a good ruling. It could set a precedent on regulating the billionaire and multimillionaire execs who draw immeasurably from the corporate’s coffers through technique of manipulation and coercion.
Legal experts say the case will highlight the role of courts in regulating executive compensation, and shine a light-weight on Elon Musk’s management of Tesla and other corporations he owns. https://t.co/YDcIEuW2kN
— Bloomberg Law (@BLaw) November 3, 2022
In a 96 page legal transient, plaintiff Richard Tornetta has mentioned that the board did not perform its duty to minority stakeholders by approving the most important paycheck in human history. Plaintiff argues that it railroads minority stakeholders and the package was unnecessary as Musk already owned 22% of the corporate. Plaintiff argues that it is a waste of cash. Musk is allegedly using his Tesla stocks as a collateral for Twitter’s acquisition. There’s no official word on how much Musk has invested from selling his personal stocks.
— Lukas (@LukasLueg) October 2, 2022
The lawsuit by shareholder Richard Tornetta alleges the package was unnecessary, since Musk on the time owned 22% of Tesla, giving him loads of incentive to make the corporate a hit. Tornetta seeks to cancel the plan, including stock options already granted 3/4 pic.twitter.com/TiJj9zAY45
— Reuters Legal (@ReutersLegal) April 29, 2022
Besides Elon Musk, following Tesla directors have been named within the lawsuit – Brad W Buss, Robyn M Denholm, Ira Matthew Ethrenpries, Antonio J Gracias, Stephen T Jurvetson, James R Murdoch, Linda Johnson Rice, Recent Castle County Sheriff. The opposite two mentioned are Tesla Inc and Elon’s brother Kimble Musk. Access all the doc here.
The Delaware court ain’t gonna roll out a red carpet for the world’s richest billionaire. Recent Twitter acquisition, the continued mayhem on the bird app’s HQ, disgruntled employees at Tesla and a complete lotta other aspects too will come into play because the judge begins trial.