Lawyers Seek $6 Billion in Musk Pay Case

Chancellor Kathaleen McCormick of Delaware's Court of Chancery faces a critical decision regarding a $6 billion fee request from lawyers who successfully voided Elon Musk's $56 billion pay package. The Delaware Supreme Court has cautioned against awarding excessive fees that could be considered a 'windfall,' a warning likely aimed at this high-profile case. The legal team has argued that their extensive work justifies the unprecedented fee, which equates to around $280,000 per hour. However, historical precedents suggest that while significant compensation is warranted for successful litigation, it should not be excessive. Shareholders of Tesla, who previously voted to reinstate Musk's pay package, further complicate the matter, as this may influence McCormick's ruling on the appropriateness of the legal fees. The outcome of this case could have substantial implications for corporate governance and future shareholder litigation.