In a rather unprecedented move, lawyers from Bernstein Litowitz Berger & Grossmann, Friedman Oster & Tejtel and Andrews & Springer have proposed to receive $5.6 billion in Tesla Inc.’s stock to cover their legal fees. This proposal is connected to a case wherein these attorneys represented shareholders against Tesla and its CEO, Elon Musk.
As reported, the lawyers are emphasizing that the sum they are seeking is also only a small percentage of what is permitted under Delaware law. This outstanding legal case, linked to Tesla’s acquisition of SolarCity Corp. in 2016, has prompted quite the debate in legal and corporate circles. The request for payment in stocks, and on such scale, is unusual and, for many, a point of discussion in understanding implications for future high-profile corporate cases.