DOVER, Del. (AP) – A Delaware judge has rejected Tesla's request to dismiss a shareholder lawsuit over a compensation plan that could net CEO Elon Musk more than $ 50 billion over the next decade.
The lawsuit alleges that Musk and Tesla's board of directors violated their trusting obligations to the company and its shareholders, giving unfair enrichment to Musk and wasting the company's assets. It claims that the pay plan was negotiated by a compensation committee and approved by a board whose members had conflicts due to personal and professional ties to Musk.
In a ruling Friday, the judge refused to dismiss the breach of claims of malpractice against Tesla and Musk, and an unjust enrichment claim against Musk.
He rejected the claim because of waste of the company's assets.