The latest chapter of Elon Musk vs the Delaware court system may be delayed if Tesla lawyers get their way.
According to a report from Bloomberg, the lawyers are arguing that the upcoming July 8 hearing should be delayed after the June 13 shareholder vote that re-approved Elon Musk’s $56 billion pay package. In a connected move, shareholders also voted to move Tesla’s incorporation from Delaware to Texas. Their submitted argument noted that the recent vote “alters the course of the ongoing litigation.”
The ongoing litigation stretched back to January when a Delaware judge voided Musk’s 2018 pay package due to conflict of interest issues. In her ruling, the Judge found multiple Tesla board members had undisclosed conflicts of interest regarding the CEO’s pay and its approval.
The next step in the process was a July hearing, during which the Judge would set lawyer compensation ahead of the final ruling sometime in Fall or Winter 2024. Once the final ruling is delivered, Musk then can appeal. However, Tesla is seeking to delay this compensation hearing to lay out the implications of the shareholder vote.
Although the Judge does not have to recognize the shareholder vote, she will take it into consideration on whether to delay the hearing or not. With the hearing coming up quickly, we should see a ruling on the motion within the next two weeks.
