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BumRushDaShow

(129,662 posts) Sat Mar 2, 2024, 08:39 PM Mar 2

Lawyers seek nearly $6 billion in Tesla stock after getting Musk pay package struck down

Source: CNBC/NBC News

Published Sat, Mar 2 2024 8:08 AM EST

Lawyers asked a Delaware judge to award them Tesla stock worth nearly $6 billion as of Friday as their fee for successfully arguing that CEO Elon Musk’s 2018 pay package was unlawful.

The fee would dwarf records for attorney paydays if a judge approves it. Lawyers who worked on Enron-related class actions were awarded $688 million in fees in 2008. The lawyers had earlier convinced the Delaware chancery court to revoke Musk’s $56 billion pay package from 2018, with the judge ruling that Tesla’s board of directors failed to prove it was fair to shareholders.

On Friday, in a petition for fees and expense reimbursement filed to that court, the attorneys argued that the fee would be justified given how much value they delivered to Tesla shareholders. The lawyers represent former heavy metal drummer Richard Tornetta, who filed the suit on behalf of his fellow Tesla investors.

The lawyers are asking for just over 11% of the Tesla shares that would have gone to Musk, or slightly more than 29.4 million shares. Tesla’s stock closed Friday at $202.64 per share, meaning the fee would be worth about $5.96 billion. Taking their pay in Tesla shares demonstrates they are prepared to “eat our cooking,” the lawyers wrote.

Read more: https://www.cnbc.com/2024/03/02/lawyers-seek-nearly-6-billion-in-tesla-stock-after-getting-musk-pay-package-struck-down.html

13 replies

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Lawyers seek nearly $6 billion in Tesla stock after getting Musk pay package struck down (Original Post) BumRushDaShow Mar 2 OP

That doesn't sound like a time and materials line of reasoning bucolic_frolic Mar 2 #1

it is not clear from the article who initiated the lawsuit ClaudetteCC Mar 2 #2

Earlier reference OP BumRushDaShow Mar 2 #7

I just took my first ride in a Tesla. Irish_Dem Mar 2 #3

I got to ride in one of the very early Roadsters. My boss pre-ordered it when it was starting chowder66 Mar 2 #5

I was surprised that the Tesla has a bare bones interior compared to other luxury cars. Irish_Dem Mar 2 #6

Might want to check those billable hours again. Sneederbunk Mar 2 #4

This message was self-deleted by its author GP6971 Mar 2 #8

it is what has ruined our country oldinmtdem92 Mar 3 #9

Greed for sure. It and radical religious fervor are the two things that will and according KPN Mar 3 #10

Are they going to donate it to food banks? Homeless shelters? Public schools? Publicly owned KPN Mar 3 #11

The transaction is supposedly based on obtaining shares of stock that total that BumRushDaShow Mar 3 #12

Oooh, I like that! KPN Mar 3 #13

bucolic_frolic

(43,364 posts)

1. That doesn't sound like a time and materials line of reasoning

Reply to BumRushDaShow (Original post)

Sat Mar 2, 2024, 08:46 PM

Mar 2

I always did enter the wrong professions.

ClaudetteCC

(24 posts)

2. it is not clear from the article who initiated the lawsuit

Reply to bucolic_frolic (Reply #1)

Sat Mar 2, 2024, 08:53 PM

Mar 2

and who the $6billion would otherwise go to. I wonder how many total hours of labor this $6billion required...

BumRushDaShow

(129,662 posts)

7. Earlier reference OP

Reply to ClaudetteCC (Reply #2)

Sat Mar 2, 2024, 10:38 PM

Mar 2

https://www.democraticunderground.com/10143187211

Irish_Dem

(47,518 posts)

3. I just took my first ride in a Tesla.

Reply to BumRushDaShow (Original post)

Sat Mar 2, 2024, 08:55 PM

Mar 2

A friend has one and gave me a spin in it.

Strange car. Quiet, spooky quiet.
Large computer screen takes up a lot of space on what used to be a dashboard.

I have no idea how you open the car door. Handle recessed, friend opened the car door for me.
But first had to put a credit card like thingy on the car to open it.

Another friend has an Audi, which I like better.

I will stick with my Honda however.

chowder66

(9,087 posts)

5. I got to ride in one of the very early Roadsters. My boss pre-ordered it when it was starting

Reply to Irish_Dem (Reply #3)

Sat Mar 2, 2024, 09:25 PM

Mar 2

at around $100k. I think he paid more than that.

We drove around Santa Monica and it was something. It was whisper quiet and bolted from a full stop. Very fun but he grew tired of it within a couple of years, mainly because there weren't enough charging stations so he got rid of it and bought an Audi.

Irish_Dem

(47,518 posts)

6. I was surprised that the Tesla has a bare bones interior compared to other luxury cars.

Reply to chowder66 (Reply #5)

Sat Mar 2, 2024, 09:35 PM

Mar 2

My friend with Audi has an interior to die for.
All white leather chair like upholstery. Quiet smooth ride.
Dreamy indirect lighting in the interior.

She drove us to a restaurant for a Christmas outing and I told her to let me stay in her car.
They could bring me a doggie bag, I would just lounge in her Audi.

Tesla just a fairly regular interior I thought.

Right, the Tesla takes off fast. A bit jumpy of a ride I thought.
Brakes the same way.

Sneederbunk

(14,314 posts)

4. Might want to check those billable hours again.

Reply to BumRushDaShow (Original post)

Sat Mar 2, 2024, 09:21 PM

Mar 2

Response to BumRushDaShow (Original post)

GP6971 This message was self-deleted by its author.

oldinmtdem92

(47 posts)

9. it is what has ruined our country

Reply to BumRushDaShow (Original post)

Sun Mar 3, 2024, 12:51 PM

Mar 3

fucking baldface greed ,in many forms from skyhigh rents to getting gouged at the grocery, it is all related to the greedy oil companies.

KPN

(15,665 posts)

10. Greed for sure. It and radical religious fervor are the two things that will and according

Reply to oldinmtdem92 (Reply #9)

Sun Mar 3, 2024, 01:10 PM

Mar 3

to the most important people in my life -- my 3 adult kids -- are causing our demise. The greed goes well beyond oil companies, but, yeah, they are a chief culprit for sure.

What gets me is how many of those who I associate and have associated with in my life have seen this coming for decades (at least 4 now) and -- over that same time -- it has only gotten worse; far worse. The feeling is and has been that we are at some kind of precipice, yet the greed, fervor and consequent blindness keep going up. It's unsustainable and I think the billionaires-wanna-be trillionaires all know it. Meanwhile the radical evangelicals all cheer the imminent rapture.