Elon Musk has criticized the legal fee request of $6 billion filed by attorneys representing Tesla shareholders in the recent pay package case. The Tesla CEO took to X (formerly Twitter) to voice his opposition, labeling the sum criminal.
Reacting to a post by X user DogeDesigner, who shared a Reuters report about the lawyers’ excessive demand, Musk responded, “The lawyers who did nothing but damage Tesla want $6 billion. Criminal.
The legal fee request, amounting to 11% of Tesla’s current stock value, stems from a lawsuit filed by a Tesla shareholder in 2018. The shareholder alleged that Musk used his influence over the board to secure an excessive compensation package, violating the company’s trustee duty.
Judge Kathaleen St. Jude McCormick ruled in January that Musk personally dictated the 2018 pay package in sham negotiations with non-independent directors. The package would have doubled Musk’s stake in Tesla.
While the attorneys claim the sum is justified as they worked on an occurrence basis for over five years, reactions to the news have been met with criticism and skepticism from users on X.
The requested legal fees represent a record-breaking amount, significantly larger than the $688 million awarded in the Enron collapse case in 2008, currently the highest such award.
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