DOVER, Del. (AP) — A Delaware judge has denied 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 breached their fiduciary duties to the company and its stockholders, granting unjust enrichment to Musk and wasting corporate assets. It alleges that the pay plan was negotiated by a compensation committee and approved by a board whose members had conflicts because of personal and professional ties to Musk.READ MORE: Summer Departs With Sweltering Temperatures; Smoky Skies Draped Over East Bay
In a ruling Friday, the judge refused to dismiss the breach of fiduciary duty claims against Tesla and Musk, and an unjust enrichment claim against Musk.READ MORE: Scaled-Down Dreamforce Marks Major Step In San Francisco's COVID Economic Rebound
He did dismiss the claim alleging waste of corporate assets.MORE NEWS: KPIX Original Report: SF Mission Bay Sidewalks Sinking But City Won't Fix 'Private Property'
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