{"id":1505673,"date":"2024-12-03T00:15:00","date_gmt":"2024-12-03T05:15:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1505673"},"modified":"2024-12-03T00:15:00","modified_gmt":"2024-12-03T05:15:00","slug":"biden-linked-delaware-judge-rejects-again-musks-70-shareholder-approved-56-billion-pay-package","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/biden-linked-delaware-judge-rejects-again-musks-70-shareholder-approved-56-billion-pay-package\/1505673\/","title":{"rendered":"Biden-Linked Delaware Judge Rejects (Again) Musk’s ‘70%-Shareholder-Approved’ $56 Billion Pay-Package"},"content":{"rendered":"

Biden-Linked Delaware Judge Rejects (Again) Musk’s ‘70%-Shareholder-Approved’ $56 Billion Pay-Package<\/span><\/p>\n

\n

Delaware Judge Kathaleen McCormick has once again sided against Elon Musk…<\/p>\n

After ruling against the billionaire in July 2022 when he tried to break his $44 billion contract to buy Twitter<\/a><\/strong>, and again in January 2024 when she initially rescinded Musk’s record (but “deeply flawed”<\/strong> according to her) $56 billion performance-based compensation package (determining that Tesla deceived shareholders when the all stock compensation was approved in 2018), she has once again ruled that pay package.<\/strong><\/p>\n

Musk’s legal team argued that McCormick should reverse her earlier decision because Tesla had conducted a shareholder vote to \u201cratify\u201d the 2018 pay plan at the company’s annual shareholder meeting in June,\u00a0per CNBC. <\/a><\/p>\n

In fact, 72% of Tesla shareholders voted in June to approve the company’s CEO’s pay package<\/strong>.<\/p>\n

The judge said Musk’s attorneys made an argument with multiple “fatal flaws,” including their argument that the shareholder vote was enough to validate the pay package after the fact.<\/p>\n

“The large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law,” McCormick said in her ruling.<\/em><\/p>\n

McCormick ruled that the vote on the payment package did not have a “ratifying effect”<\/strong> on the current case, because shareholders had not ratified the payment plan prior to her ruling.<\/p>\n

\u201cWere the court to condone the practice of allowing defeated parties to create new facts for the purpose of revising judgments, lawsuits would become interminable,”<\/em> she wrote.<\/p>\n

<\/a><\/p>\n

In addition to rejecting the revisions, Quartz reports<\/a> that Monday\u2019s decision granted $345 million in attorney fees to the lawyers who successfully challenged Musk\u2019s pay plan on behalf of Tesla shareholders. <\/strong><\/p>\n

The court deemed this amount an \u201cappropriate sum to reward a total victory.\u201d<\/p>\n

Tesla has the option to pay this fee in either cash or by issuing stock that can be sold on the open market.<\/p>\n

While Musk could appeal the decision to the Delaware Supreme Court, this ruling could have broader implications for how companies structure executive compensation and the\u00a0role of shareholder votes<\/a>\u00a0in such decisions.<\/strong><\/p>\n

This is the judge https:\/\/t.co\/c0NGTraJfO<\/a> pic.twitter.com\/svrp39JxmQ<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) December 2, 2024<\/a><\/p>\n

Finally, the judge has some interesting ‘friends’…<\/p>\n

“Before becoming the head of the Delaware Chancery Court, McCormick worked at a Delaware law firm called Young Conaway.<\/strong><\/em><\/p>\n

This firm and its employees have been major donors to President Joe Biden<\/strong> for decades.<\/em><\/p>\n

In 2016, Hunter Biden hosted a gubernatorial campaign<\/strong> event for Congressman John Carney, with then-Vice President Joe Biden as the guest speaker.<\/em><\/p>\n

This event took place at the Law Offices of Young Conaway<\/strong> in Wilmington, Delaware.<\/em><\/p>\n

Carney, a close friend of Joe Biden for the last four decades, later became governor and nominated Kathaleen McCormick, a partner at Young Conaway, to her position on the Delaware Chancery Court.<\/strong><\/em><\/p>\n

In a March 2018 email, Hunter Biden claimed to personally know every judge on the Delaware Chancery Court while threatening legal action against his Chinese business partners.<\/em><\/p>\n

“I will bring the suit in the Chancery court in Delaware – which as you know is my home state and I am privileged to have worked with and know every judge on the chancery court.<\/strong><\/em><\/p>\n

…\u00a0another clear example of the Biden administration and its allies weaponizing the American legal system against their political opponents.”<\/em><\/p>\n

Judge Kathaleen McCormick rescinded Elon Musk’s $55 billion Tesla compensation package, overturning the company’s board and 80% of its shareholders.<\/p>\n

McCormick also ruled against @elonmusk<\/a> during his Twitter acquisition.<\/p>\n

Before becoming the head of the Delaware Chancery Court,\u2026 pic.twitter.com\/k2F4CHDJuT<\/a><\/p>\n

\u2014 KanekoaTheGreat (@KanekoaTheGreat) February 1, 2024<\/a><\/p>\n

Tesla issued a statement on X shortly after the decision, confirming that it will appeal her decision….<\/p>\n

A Delaware judge just overruled a supermajority of shareholders who own Tesla and who voted twice to pay @elonmusk<\/a> what he\u2019s worth.<\/p>\n

The court\u2019s decision is wrong, and we\u2019re going to appeal.<\/p>\n

This ruling, if not overturned, means that judges and plaintiffs\u2019 lawyers run Delaware\u2026<\/p>\n

\u2014 Tesla (@Tesla) December 2, 2024<\/a><\/p>\n

There is also the fact that Musk’s move to relocate his business to Texas (after telling people on X after the original ruling that “companies should get the hell out of Delaware”) which could change things, but it is is unclear how this will proceed for now.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 12\/02\/2024 – 19:15<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/political\/biden-linked-delaware-judge-rejects-again-musks-70-shareholder-approved-56-billion-pay<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Biden-Linked Delaware Judge Rejects (Again) Musk’s ‘70%-Shareholder-Approved’ $56 Billion Pay-Package Delaware Judge Kathaleen McCormick has once again sided against Elon Musk… After ruling against the…<\/p>\n","protected":false},"author":0,"featured_media":1505674,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1505673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1505673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1505673"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1505673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1505674"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1505673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1505673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1505673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}