It’s time to break out the world’s smallest violin as Elon Musk has missed out on his $56 billion payday. While there’s a lot to unpack in the 103 page ruling, Tesla shareholders voted in favor of a proposal to give Musk a performance-based stock option award in 2018. A judge later overruled that and shareholders eventually voted to award Musk for a second time.
Fast forward to today and Chancellor Kathaleen McCormick said the effort was hokum. In her ruling, she declared a “large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law.” She went on to mention four fatal flaws including “no procedural ground for flipping the outcome of an adverse post trial decision based on evidence they created after trial.”
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