Tesla’s plans to reinstate Elon Musk’s compensation scheme and reincorporate in Texas are fuelling an ongoing litigation based in the Court of Chancery. The shareholder plaintiff in the case, who previously managed to invalidate Musk’s compensation plan, freshly filed five motions on Tuesday, marking a new stage in this unfolding legal narrative.
Among the filed motions, one seeks an injunction restricting Tesla or its directors from bypassing the January 30th post-trial decision of Chancellor Kathaleen McCormick. The injunction aims to prevent litigation related to this case occurring in a different jurisdiction.
The plaintiff’s motions also propose the courtroom to order over 303 million shares, which were a part of Musk’s compensation plan, to be sequestered or placed within a constructive trust.
The next stage of this case serves as a meaningful escalation within this corporate legal dispute. At the heart of it sits the decision on Musk’s 2018 compensation plan and whether Tesla is to relocate to Texas – two matters which the automaker seeks shareholder votes for. The outcome will certainly be one eyed keenly by legal professionals dealing with corporate litigation.
Get further details on the developments in this case from the complete legal article here.