Lawyers who sued to void Musk's Tesla pay package less likely to receive 'windfall' fees

Published On Aug 29, 2024, 12:21 PM

A Delaware court is currently examining the legal fees requested by lawyers who sued to void Elon Musk's Tesla pay package. They are seeking $6 billion in fees, but a recent ruling suggests such large fees may not be awarded. The question arises whether Tesla shareholders' vote to reinstate Musk's compensation was valid, which could affect the fee amount. The lawsuit has been ongoing since 2018, with plaintiffs claiming they worked without pay under the understanding they'd receive a share of any recovery. Tesla's board initially pushed for Musk’s pay reinstatement, complicating the situation.