Judge approves settlement in suit that Tesla’s board overpaid themselves

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Judge approves settlement in suit that Tesla’s board overpaid themselves

Judge approves settlement in suit that Tesla’s board overpaid themselves

A judge has approved the settlement that finally wraps up a case against Tesla by the Police and Fire Retirement System of the City of Detroit. The shareholders argued that Tesla’s board of directors overpaid themselves between 2017 and 2020.

Chancellor Kathaleen McCormick of Delaware’s Court of Chancery approved the settlement yesterday. Tesla’s directors will be required to return roughly $277 million in cash and $459 million in stock options, as well as forgoing stock options for 2021-23 worth $184 million. McCormick also awarded $176 million in fees and costs to the trio of law firms that brought the case on a contingency basis.

Some of the notable directors named in the suit include Chair Robyn Denholm, James Murdoch (son of Fox News owner Rupert Murdoch) and Larry Ellison (co-founder of Oracle). The board members did not admit to wrongdoing and the settlement does not specify how much each individual should return, only the collective amount.

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