Elon Musk Faces New Lawsuit: Lawyers Demand $6 Billion in Tesla Stock
A group of lawyers representing Tesla investor Richard Tornetta have filed a request for their legal fees to be paid in the form of $6 billion worth of Tesla stock. This comes after the same lawyers previously contested Elon Musk’s $55.8 billion pay package, claiming it was excessive. The request for stock instead of cash is based on the argument that it directly links the fee to the benefit created and avoids taking funds from Tesla’s balance sheet. The lawyers are confident that Musk’s pay package will result in the return of millions of shares to the carmaker.
Musk’s Ongoing Legal Battles
In addition to this new lawsuit, Elon Musk is currently involved in other legal disputes. One notable case involves Sam Altman and his Artificial Intelligence (AI) company OpenAI. Musk is suing OpenAI for breach of agreement, alleging that the company has shifted its focus towards profit-driven AI development rather than its original mission of developing AI for the benefit of humanity. The lawsuit specifically mentions OpenAI’s partnership with Microsoft as evidence of this deviation.
Lawyers’ Request Draws Criticism
The request by Tornetta’s lawyers to be compensated with $6 billion worth of Tesla stock has sparked criticism and controversy:
- Elon Musk responded to the filing on X, referring to the lawyers as “criminals” and accusing them of damaging Tesla.
- Corporate law professor Ann Lipton commented on the magnitude of the claim, noting that it involves the largest compensation award ever given to an executive.
- Judge Kathaleen McCormick, who previously referred to Musk’s pay package as unfathomable, will need to approve the request for Tesla shares.
Conclusion: A Bold Move by Lawyers
The lawyers representing Richard Tornetta’s lawsuit against Tesla have made a bold move by requesting their legal fees be paid in the form of $6 billion worth of Tesla stock. While their argument is based on linking the fee directly to the benefit created and avoiding financial strain on Tesla, the request has been met with criticism from Elon Musk and others. The outcome of this request remains to be seen, as it awaits approval from Judge Kathaleen McCormick. In the meantime, Elon Musk continues to face legal battles on multiple fronts, including his ongoing dispute with OpenAI.
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