Lawyers Demand 29 Million Tesla Shares for Representing Shareholder in Lawsuit Against Elon Musk

Background

Three law firms representing Tesla shareholder Richard Tornetta are seeking payment in the form of 29 million Tesla shares. The case, which has been ongoing for over five years, involved 37 lawyers, associates, and paralegals working on a contingency basis. Chancellor Kathaleen McCormick, the judge who voided Musk’s compensation package, is overseeing the case.

Astronomical Fee Request

The legal team representing Tornetta is requesting an eye-watering $370,000 per hour worked, totaling a staggering $7.2 billion. This request mirrors Musk’s ambitious endeavors.

Legal Battle Details

The law firms claim that their efforts led to shares being returned to investors instead of going to Musk, thereby preventing dilution of stock held by other investors. The lawyers are adamant about being compensated with 29 million Tesla shares valued at over $7 billion.

Court Proceedings

Recently, Tornetta’s lawyers and Musk’s legal team presented their arguments in a Delaware court. John Reed, representing Tesla, suggested a much lower fee of $13.6 million. The court received objections from over 8,000 Tesla shareholders regarding the proposed $7.2 billion fee.

Legal Implications

Following a shareholder vote in June to reinstate Musk’s pay package, Tornetta’s initial legal victory turned into a loss. This outcome has raised concerns about the lawsuit’s impact on Tesla and its shareholders.

Judicial Decision

Chancellor Kathaleen McCormick will deliberate on the legal ramifications of the re-ratification vote in the upcoming weeks. The final ruling on the requested legal fees may take several weeks or months.