Tesla Shareholders Lawyers ask for Record $5.6 billion Legal Fees, after stopping massive pay rise for CEO Elon Musk

Tesla (Credit: Business Insider)

Lawyers for Tesla shareholders that went to court and successfully won an argument against awarding Elon Musk $55 billion in a massive package, have asked the court to award them $5.6 billion in Tesla stock for their work.

Tesla which makes electric vehicles was founded by current CEO, Elon Musk who has overseen the company’s stock climb to stratospheric heights in the stock market.

Tesla is a pioneer in the electric vehicle market, and is one of the most recognizable brands in that segment.

Elon Musk had sought for and received an undertaken from the Board of Directors to get a massive compensation of $55 billion which would have doubled his current shareholding of 13%

Lawyers working in the interest of the company shareholders went to court to stop the implementation of the pay package to Musk, who is one of the richest men in the world.

The lawyers are telling the court in the state of Delaware, that they worked on the case for five years and if they had lost, they would be entitled to nothing from the shareholders.

However, the court with Judge Kathleen St. Jude McCormick, ruled in favor of the shareholders and stopped the massive pay rise for Elon Musk.

The request by the lawyers, if granted by the Judge, would be a world record in legal fees awarded to lawyers. The previous record for legal fees is $688million awarded during the bankruptcy of the defunct US energy giant, Enron.


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