Judge approves settlement in lawsuit in which Tesla’s board of directors overpaid themselves

The judge approved the settlement that finally puts the case to rest Against Tesla by the police and the Detroit Fire Retirement System. Shareholders argued that Tesla’s board overpaid themselves between 2017 and 2020.

Counsel Kathleen McCormick of the Delaware Court of Chancery consent Settlement yesterday. Tesla managers will be required to return approximately $277 million in cash and $459 million in stock options, as well as give up 2021-2023 stock options worth $184 million. McCormick also awarded $176 million in fees and costs to the three law firms that brought the case on a contingency basis.

Prominent directors named in the lawsuit include Chairman Robin Denholm, James Murdoch (son of Fox News owner Rupert Murdoch) and Larry Ellison (co-founder of Oracle). The board members did not admit to any wrongdoing, and the settlement did not specify the amount each individual must return, only the collective amount.