Tesla shareholder seeks to block Musk from litigating pay outside of Delaware

WILMINGTON, Delaware, April 24 (Reuters) – A Tesla investor who successfully sued to void Musk’s $56 billion pay package has asked a Delaware judge to keep the lawsuit in the state, after the company asked shareholders to approve moving the electric vehicle maker’s legal home to Texas.

Richard Tornetta’s legal team on Wednesday asked the Delaware judge who voided Musk’s pay to rule on his request before the June 13 shareholder meeting.

Tesla investors at the meeting will vote on moving the company’s legal home out of Delaware and on approving Musk’s 2018 pay package.

In January, a Delaware Court of Chancery judge voided the pay package, which Tesla estimated is worth up to $56 billion, calling it “unfathomable.”

Musk has criticized Delaware and its courts following the ruling and has said the state, which is home to a majority of large publicly traded corporations, is trying to prevent companies from leaving.

Source: Reuters