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In re Tesla Motors Inc Stockholder Litigation

In re Tesla Motors, Inc. Stockholder Litigation, C.A. No. 12711-VCS (Del. Ch. Apr. 27, 2022)
JurisdictionUnited States
Year2022
Statusunclear

Key Principle

The Delaware Court of Chancery rescinded Elon Musk's $55.8 billion compensation package as an unfair self-dealing transaction, finding the board failed to satisfy the entire fairness standard due to lack of independence and inadequate process.

Area of Law

corporate

Related Cases

ASIC v Cassimatis (No 8) (2016) 336 ALR 209
Tornetta v Musk C.A. No. 2018-0408-KSJM (Del. Ch. 2024)
Slack Technologies LLC v Pirani 598 U.S. 759 (2023)

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