Lawyers ask for $5.6b Tesla stock

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Lawyers representing Tesla shareholders in a lawsuit against the company and CEO Elon Musk have requested $5.6 billion in Tesla stock as legal fees. This request follows a Delaware court ruling in January that deemed a massive pay package for Elon Musk illegal and voided it. The lawyers argued that their work, which was conducted on a contingency basis over more than five years, significantly benefited Tesla by challenging Musk's compensation package, which could have nearly doubled his stake in the company. The requested amount represents 11% of the Tesla stock Musk was seeking in his compensation package, which was valued at approximately $55 billion. This legal fee request, if approved, would be unprecedented, far surpassing the record $688 million awarded in legal fees from the Enron class-action lawsuit in 2008. The lawyers also seek $1.1 million in expenses. The ruling by Judge Kathaleen St. Jude McCormick found that the compensation package was the result of sham negotiations and was unfairly awarded to Musk, who was deemed to have controlled the process.
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