Tesla must rescind its record-breaking plan for compensating Elon Musk, Chancellor Kathaleen McCormick decided Tuesday afternoon in a first of its kind opinion.
In the 200-page opinion, McCormick determined that Musk was considered a controller of Tesla under Delaware law, putting the burden of entire fairness on Musk’s defense team—the same Cravath, Swain & Moore and Ross Aronstam & Moritz attorneys that previously successfully defended Musk in a shareholder case challenging Tesla’s acquisition of SolarCity.
