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Judge to Decide on Record-Breaking $7 Billion Legal Fee Request in Musk Case

Lawyers seek unprecedented fee after winning case against Elon Musk's $55 billion Tesla pay package.

Tesla and SpaceX chief executive officer Elon Musk listens to a question as he speaks at the SATELLITE Conference and Exhibition in Washington, March 9, 2020. A Delaware judge heard arguments Monday, July 8, 2024, over a massive and unprecedented fee request by lawyers who argued that a massive and unprecedented pay package for Tesla CEO Musk was illegal and should be voided. (AP Photo/Susan Walsh, File)
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Overview

  • Delaware judge to rule on whether plaintiff lawyers should receive $7 billion in Tesla stock as legal fees.
  • Attorneys argue their efforts returned $51.4 billion in shares to Tesla, benefiting shareholders.
  • Critics claim the fee request is excessive and may have harmed Tesla's market value.
  • Plaintiff lawyers propose an alternative $1.44 billion cash fee if stock request is denied.
  • Judge's decision follows her earlier ruling voiding Musk's 2018 compensation package.