Our recent Client Alert discusses the highly anticipated decision from the Delaware Supreme Court upholding recent amendments to the Delaware General Corporation Law (DGCL) that provide safe harbor procedures set forth in Section 144 of the DGCL for board decisions and corporate transactions involving director, officer, or controlling stockholder conflicts.
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Delaware Supreme Court Reverses Rescission of Elon Musk’s Pay Package and Lowers Plaintiff’s Fee Award
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Our recent Client Alert discusses the highly anticipated ruling on December 19, 2025, by the Delaware Supreme Court reversing the Court of Chancery’s rescission of Elon Musk’s 2018 equity compensation package. The per curiam opinion focused on the remedy rather than liability, holding that rescission was an “improper remedy” given the inability to restore the status quo. The Delaware Supreme Court awarded nominal damages of $1 and adopted Tesla’s proposed quantum meruit approach for attorneys’ fees—lowering the fee award from $345 million to approximately $54.5 million.Continue Reading Delaware Supreme Court Reverses Rescission of Elon Musk’s Pay Package and Lowers Plaintiff’s Fee Award