Earlier this year, Tesla made headlines as its board settled a contentious legal matter by returning over $700 million, alleging they had excessively compensated themselves. Now, the legal eagles behind this victory are seeking their own substantial payout, equating to a jaw-dropping $10,690 per hour for each of them.
These legal representatives are currently petitioning for approval from Delaware Court of Chancery Judge Kathaleen McCormick, who is overseeing the case. If approved, this $229 million payout would mark a historic milestone, constituting the largest-ever result stemming from a shareholder lawsuit against a corporate board.
A crucial hearing is slated for October, with the fate of this remarkable payout hanging in the balance until Judge McCormick grants her approval.
Reports from Reuters indicate that attorneys from multiple law firms devoted more than 10,000 hours to this case between 2017 and 2020. Furthermore, two other law firms, one based in Wilmington, Delaware, and another in Lansing, Michigan, also submitted bills for "hundreds of hours" spent on the legal battle.
As of now, Tesla's directors have not raised objections to this formidable legal fee, but it is anticipated that they will do so before the impending deadline this Friday.
It's worth noting that Delaware courts have previously endorsed even higher hourly rates, exemplified by a colossal $304 million fee translating to an astonishing $35,000 per hour. This latest legal development underscores the ever-evolving landscape of corporate governance and the financial stakes involved in shareholder lawsuits.
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