Delaware Supreme Court Accepts Legal Scholars’ Briefs in Elon Musk Tesla Compensation Case

The Delaware Supreme Court has decided to allow two amicus briefs from law professors, who are advocating for the court to maintain the Court of Chancery’s decision to rescind Elon Musk’s compensation package at Tesla. This is part of an appeal filed in January, with arguments yet to be scheduled. These briefs are among eight amicus briefs in the case, where the remaining six support Tesla and Musk’s request for the Supreme Court to overturn the decision to protect shareholders’ rights. According to the professors, a reversal would undo the precedent set by last year’s In re Match Group decision, which deals with “cleansing” mechanisms in conflicted controller transactions.