A Delaware judge upheld an earlier decision Monday requiring Tesla to cancel Elon Musk’s multibillion-dollar compensation package.
Delaware Chancellor Kathaleen St. Jude McCormick dismissed a motion from Musk and Tesla’s board members to overturn her previous mandate that rescinded Musk’s lucrative deal. McCormick also denied a request for legal fees from the plaintiff’s attorneys as they sought Tesla stock valued at over $5 billion but will receive $345 million instead.
“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,” McCormick wrote.
McCormick’s 103-page decision noted that a shareholder vote alone cannot legitimize a transaction marred by conflicts of interest. She further stated that even if such a vote could ratify the deal, it would still be…
