Tesla, shareholder clash over $7-billion legal fee request in Musk pay case
) shareholders will appear in court on Monday to argue that an unprecedented request for more than $7 billion in attorneys' fees to be paid by the company is"outlandish," the latest twist in a legal showdown over Musk's $56 billion pay package.
"The legal fees appear exceedingly disproportionate and outlandish," Nathan Chiu, a Tesla shareholder from New Jersey, wrote to Chancellor Kathaleen McCormick (NYSE:Chiu, the California Public Employees' Retirement System and more than 8,000 Tesla stockholders have flooded the Delaware Chancery Court with some 1,500 letters and objections over the fee, according to court documents.
Tornetta's attorneys said it is the largest judgment ever awarded by an American court, excluding punitive damages. They argued they should receive a fee equal to 11% of that judgment, a percentage that is arguably conservative by Delaware legal precedent. They asked to be paid in the form of 29 million Tesla shares.
The Musk case took a dramatic turn when Tesla shareholders in June voted to ratify Musk's pay, which Tesla has argued corrected the flaws in the 2018 process that McCormick identified in her ruling.
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