Crime & Safety
Tesla Told To Provide Documents Involving Elon Musk Compensation
Shareholders accused Musk and Tesla's board of directors of breaching their fiduciary duties to the Palo Alto-based company.
DOVER, Del. (AP) — A Delaware judge on Monday ordered lawyers representing Tesla Inc. directors to turn over certain communications that CEO Elon Musk may have shared with the company’s top in-house attorneys before the board approved a compensation plan in 2018 that could net Musk more than $50 billion.
The ruling by Vice Chancellor Joseph Slights Jr. came in response to a motion to compel filed on behalf of shareholders who have accused Musk and Tesla’s board of directors of breaching their fiduciary duties to the Palo Alto-based company and its stockholders, granting unjust enrichment to Musk and wasting corporate assets.
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While granting the plaintiffs access to certain documents that Musk either sent or received, Slights denied access to a broader range of other documents that defense attorneys have argued are similarly protected by attorney-client privilege.
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