Elon Musk's lawyers seek historic $6B in fees after successful voiding of pay package

In a groundbreaking development, three prominent law firms have approached a U.S. court in Delaware with a bold request: they are seeking nearly $6 billion worth of Tesla (NASDAQ: TSLA) stock as their fee for successfully overturning Elon Musk's controversial $55 billion pay package.

Chief Judge Kathaleen McCormick of the Delaware Chancery Court recently invalidated the massive performance-based stock option grant that was awarded to Musk back in 2018. This decision came in response to a shareholder lawsuit filed by former heavy metal drummer Richard Tornetta on behalf of Tesla investors, alleging improper approval of the package. The law firms involved in this high-stakes legal battle include New York-based Bernstein Litowitz Berger & Grossmann and Friedman Oster & Tejtel, as well as Wilmington Del.

-based Andrews & Springer. In a joint filing submitted to the Delaware Court of Chancery, the firms emphasized the extensive efforts that led to the successful outcome, highlighting the complete rescission of what was deemed the largest pay package ever issued. Seeking approximately 11% of the shares that would have been allotted to Musk under his invalidated pay package, the law firms are looking to secure around 29.

4 million Tesla shares, equivalent to the staggering sum of $5.96 billion based on the recent closing price of Tesla stock. If their request is granted, this payout would set a new record for attorneys in a corporate case.

Despite the unprecedented nature of their fee request, the law firms recognized the magnitude of the situation in their filing, acknowledging that "the requested fee is unprecedented in terms of absolute size."