Delaware Supreme Court Reverses Chancellor McCormick and Reinstates Elon Musk's 2018 Tesla Compensation Plan

But focuses solely on remedy

The Delaware Supreme Court today resolved the long-running litigation over Tesla CEO Elon Musk’s 2018 compensation plan.¹ In a per curiam opinion, the Court reversed “the Court of Chancery’s rescission remedy” and awarded just $1 in nominal damages. It also modified Chancellor McCormick’s fee award, basing the award on based on quantum meruit, thereby slashing the award to approximately $55 million, representing the Plaintiff’s lodestar, a four times multiplier, and post-judgment interest on the revised fee award from December 2, 2024.

Prior coverage:

Brief of Current and Retired Practitioners and Professors as Amici Curiae in Support of Reversal in In re Tesla, Inc. Derivative Litigation

The Delaware Supreme Court Heard Oral Argument in Elon Musk’s Compensation Case