Tesla investors to urge judge to reject record $7 bln legal fee in Musk pay case
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Tesla shareholders will appear in court on Monday to argue that an unprecedented request for more than $7 billion in attorneys' fees to be paid by the company is "outlandish," the latest twist in a legal showdown over Musk's $56 billion pay package.
The record fee request was made by investor Richard Tornetta on behalf of three law firms that represented him, including Bernstein Litowitz Berger & Grossmann. Tornetta owned nine shares of Tesla when he sued over Musk's pay package of stock options in 2018, a legal battle he ultimately won in January when the package was voided.
The fee equals around $7.2 billion at Tesla's Friday's stock price and amounts to a rate of roughly $370,000 for every hour worked by the 37 lawyers, associates and paralegals, some of whom normally bill as little as $275 an hour, according to court documents submitted Tornetta's lawyers.
WILMINGTON, Delaware, July 8 (Reuters) - A record $7 billion in attorneys' fees for three firms that successfully challenged Elon Musk's $56 billion Tesla pay package provides an incentive for lawyers to hold corporate boards accountable, an attorney for a company shareholder told a Delaware judge on Monday.
For more than six hours, legal teams for the company and a shareholder sparred over how much to award to three law firms which represented Richard Tornetta, who owned nine shares of Tesla wh
Tesla investors are expected to urge a judge to reject the record $7 billion legal fee in the Elon Musk pay case. The fee was requested by investor Richard Tornetta on behalf of three law firms that represented him in the lawsuit against Musk's $56 billion pay package. Tornetta's legal team argues that they deserve a fee equal to 11% of the judgment, which would amount to 29 million Tesla shares. They claim that such a large fee is justified and would incentivize shareholder attorneys to hold
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