OPINION
Dear Friends,
Last month, TransPerfect CEO Phil Shawe put his money where his mouth is by launching a $2 million ad attack — to expose what he sees as a corrupt Chancery Court — thereby teaming up, figuratively, with billionaire Elon Musk, who has been under attack in Kathaleen McCormick’s Chancery Court. Shawe knows full well what Musk is going through, as he has also been under attack by that very court for years.
Now, McCormick is saying Musk’s Tesla won’t use an upcoming shareholder vote to attack her ruling. It has me wondering, what’s she afraid of? Who cares if they attack? Do your job and let Musk and Tesla bring their best, as Shawe has done. Shawe continues to battle. Will Musk do the same?
Read the Reuters story below and see how ridiculous it’s getting in Delaware’s Chancery Court. Please send your feedback. Agree or disagree, it is always welcome and appreciated.
Respectfully Yours,
JUDSON Bennett–Coastal Network
Judge assured that Tesla won’t contest Musk pay ruling outside Delaware
By Reuters
May 28, 2024
DELAWARE, May 28 (Reuters) – The Delaware judge who voided Elon Musk’s record Tesla (TSLA.O), pay package told the parties in the case that she felt assured by the electric vehicle maker that it would not use an upcoming shareholder vote to attack her ruling.
WHY IT’S IMPORTANT
The shareholder legal team who sued over Musk’s $56 billion pay package had asked Chancellor Kathaleen McCormick for orders to prevent their case from being undone in a Texas court.
The shareholder legal team who sued over Musk’s $56 billion pay package had asked Chancellor Kathaleen McCormick for orders to prevent their case from being undone in a Texas court.
The company’s shareholders vote next month to “ratify” the pay package that McCormick voided and to reincorporate Tesla in Texas.
CONTEXT
The legal team for the shareholder said in a court filing in April that Tesla and Musk might attempt to undo McCormick’s ruling in another jurisdiction, like Texas.
Tesla called that “rank speculation” in court papers and said Delaware would retain jurisdiction over the pay dispute, comments that McCormick took as an assurance that the company would not attempt to work around her previous ruling.
KEY QUOTE
“If I have interpreted the defendants’ position incorrectly, then defense counsel – as officers of the court – are duty-bound to correct it. In the meantime, the defendants’ statements give me great comfort,” McCormick said in her seven-page letter.
WHAT’S NEXT
Tesla shareholders vote on June 13 to decide if they still want Musk’s pay package and to reincorporate in Texas, where it has its headquarters, from Delaware, where the majority of large publicly traded companies have their legal home.
McCormick must decide if the shareholder’s legal team should get the $6 billion they requested from Tesla as a legal fee before Musk and Tesla can appeal. She has scheduled a hearing for July 8 on the legal fee.
THE RESPONSE
Greg Varallo, an attorney for shareholder Richard Tornetta, declined to comment.
Attorneys for the company did not immediately respond to a request for comment.
Reporting by Peter Henderson; Editing by Stephen Coates
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