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Tesla settlement overview:
- Who: The Police and Fire Retirement System of the City of Detroit received an agreement for a $735 million settlement with former and current Tesla directors Brad Buss, Robyn M. Denholm, Ira Ehrenpreis, Lawrence J. Ellison, Antonio J. Gracias, Stephen T. Jurvetson, Kimbal Musk, James Murdoch, Linda Johnson Rice, Kathleen Wilson-Thompson and Hiromichi Mizuno, along with Tesla CEO Elon Musk.
- Why: The plaintiffs filed the lawsuit against the directors for breach of fiduciary duty and unjust enrichment.
- Where: The Tesla lawsuit was in the Court of Chancery for the State of Delaware.
The Police and Fire Retirement System of the City of Detroit received an agreement for a $735 million lawsuit settlement with former and current Tesla directors Brad Buss, Robyn M. Denholm, Ira Ehrenpreis, Lawrence J. Ellison, Antonio J. Gracias, Stephen T. Jurvetson, Kimbal Musk, James Murdoch, Linda Johnson Rice, Kathleen Wilson-Thompson and Hiromichi Mizuno, along with Tesla CEO Elon Musk over alleged unjust compensation that was termed “outrageous” by the plaintiffs.
The defendants agreed to settle the Tesla lawsuit for $735 million, including both returned cash, stock and returned options in exchange for admitting no wrongdoing. The board members also agreed to not receive any compensation for 2021, 2022 and 2023.
Tesla agreed to have an independent consultant review future compensation and the Tesla board will produce an annual review of all compensation received by board members. The board members’ compensation will be presented to and then voted on by stockholders in the future.
Chancellor must still approve Tesla settlement agreement
The Tesla settlement must be agreed to by Chancellor Kathaleen St. Jude McCormick.
Tesla stockholders failed in an attempt to use a prior deposition from Tesla CEO Elon Musk in a lawsuit over a $2.6 billion merger after the judge said the request came too late.
Are you a Tesla stockholder who feels the board received unfair compensation? Let us know in the comments.
The plaintiff is represented by Andrew S. Dupre and Sarah E. Delia of McCarter and English LLP. The named defendants are represented by Raymond J. DiCamillo, Kevin M. Gallagher and Kyle H. Lachmund of Richards, Layton and Finger PA, and Tesla Inc. is represented by Jason J. Jowers and Sarah T. Andrade of Bayard PA.
The Tesla settlement was from the lawsuit The Police and Fire Retirement System of the City of Detroit v. Elon Musk, et al., Case No. 2020-0477-KSJM, in the Court of Chancery for the State of Delaware.
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One thought on $735M Tesla settlement resolves ‘outrageous’ compensation lawsuit
Tesla in general is run like a concentration camp. If you point out unrealistic goals, yiu are a problem. If you point out bad managers, you are the problem. If you try to quit and give notice they terminate you on the spot. They don’t care about their workers. They sure as hell don’t care about the damage they do to people’s homes, up to and including not doing recalls of defective parts and not replacing them because they were deemed “not a hazard”… till a house catches fire! All the while the people at the top of the company get billions of dollars in return and the people at the bottom get nothing! The stock fluctuates st Elon scratching his nose. They hire new people in at a higher rate of pay than those that work there but say there is no money to give raises to old workers to get them to the same level. They had to level me up $8.50 to even get me close to what my team was making when they promoted me and I STILL wasn’t making as much as my subordinates! That place is a dumpster fire, and should be treated as such! I am so tired of people saying Tesla is so great and acting like Elon is a God! Wake up sheeple! Where is the lawsuit for all the wrongfully terminated people who were driven to be on disability for the mental health issues that place causes? Where is the lawsuit for all the hokes that have been damaged by the solar issues? The company does all kind of illegal things but pays off anyone who should care….start looking into those things….🤷🏻♀️