After the victory against Elon Musk, the lawyers demanded $6 billion in Tesla shares

All work is remunerated. A well-understood word from the shareholder advocates who scrapped Tesla’s massive compensation plan for Elon Musk in 2018. They asked a Delaware court on Friday evening for payment of legal fees that would total nearly $6 billion. . According to documents filed in court in this state, where the Tesla company is legally registered, and which AFP was able to consult, lawyers for the three consulting firms requested that they be paid their legal fees in the case won in late January. A particularly rare request, in a car manufacturer’s stock.

The companies are requesting, on the one hand, reimbursement of expenses incurred, which they estimate at $1.12 million, and on the other hand, the transfer of 29.4 million Tesla shares, which were listed at $202.64 per share at the close of Wall Street. Friday. The total value of the shares thus claimed reached $5.96 billion at Friday’s price. As of the date of the Delaware court’s decision in late January, they were worth $5.6 billion.

This would represent slightly less than 1% of Tesla’s total capital, but would put the companies together among the group’s ten largest shareholders. “We recognize that the request is unprecedented in its importance.”Identify the petitioners in the documents sent to the Delaware court, but this situation is mainly due to the fact, according to them, that “(His) efforts greatly benefited the company”. When contacted by AFP, these law firms and Tesla did not immediately respond.

Elon Musk, the South African-born billionaire entrepreneur, was forced to return Tesla shares totaling $56 billion after Judge Kathleen McCormick struck down the compensation plan following a legal action led by Richard Tornetta, one of Tesla’s shareholders. This remuneration is excessive. Since then, “The size of the requested award is significant because the value of the profits obtained by Tesla through plaintiffs’ counsel’s actions was enormous.”Insist on these shareholder lawyers.

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Judge McCormick thought that the shareholders had received the information “wrong” And “deceptive” About the Board of Directors and the Remuneration Committee, prior to the general meeting during which Elon Musk’s remuneration plan was approved. According to the prosecutor, the South African businessman gave his terms to directors who were not independent enough to oppose him due to their relationship with him or their personal interests. In response, the billionaire asked Tesla shareholders to vote in favor of transferring the company’s registration from Delaware to Texas.