Elon Musk and the Tesla shareholder who won a verdict last month voiding the CEO’s $56-billion pay package will ask a choose to pause her ruling till an enchantment is resolved, based on a Tuesday letter to the courtroom from the shareholder’s legal professional.
Greg Varallo, the shareholder’s legal professional, informed Reuters the 2 sides will comply with a keep if they’ll attain a deal on an enchantment bond.
The letter is the primary indication that Musk intends to enchantment the ruling, which the billionaire has criticized on social media, saying he’ll seek shareholder approval to maneuver Tesla’s state of incorporation to Texas, the place it has its headquarters.
Earlier than Musk can enchantment, the 2 sides will suggest a last order for approval by the choose, Kathaleen McCormick, which can embrace a petition for a authorized payment.
That payment will likely be paid by Tesla and given the large verdict, it’s more likely to be among the many largest ever. It would probably be opposed by Tesla.
Musk and the shareholder will inform the courtroom their place on charges by March 1, based on the courtroom submitting.
If McCormick approves the payment and last order, Musk would have 60 days to file an enchantment with the Delaware Supreme Court docket, which might probably take at the very least six months to resolve.
An legal professional for Musk didn’t instantly reply to a request for remark.
An enchantment bond protects a plaintiff who prevailed in courtroom by guaranteeing that the shedding occasion pays up in the event that they fail to overturn the decision.
The Jan. 30 ruling rescinded Musk’s $56-billion pay bundle, which consisted of inventory choices. Musk has not exercised the choices, which permit him to purchase Tesla inventory at a deeply discounted value. As soon as he buys the inventory he should maintain it for 5 years.
The case was introduced by shareholder Richard Tornetta, who was pursuing it on behalf of Tesla. Shareholders benefited from the return of the inventory choices to Tesla.
McCormick stated in her ruling that Musk improperly managed the pay negotiation course of and that the shareholders lacked info after they voted in 2018 to approve the bundle.
