Elon Musk Says ‘Saving The State’ As Delaware Supreme Court Slashes Tesla Legal Fees By Over $100 Million – Tesla (NASDAQ:TSLA)

The Delaware Supreme Court on Friday cut legal fees owed by Tesla Inc. (NASDAQ:TSLA) to $70.9 million from $176.1 million in a shareholder lawsuit over director compensation.

The court ruled that a Delaware Chancery Court judge overvalued the settlement when determining attorney fees.

Lawyers represented the Detroit firefighter and police pension fund, which sued Tesla directors for excessive self-compensation.

Elon Musk responded to the news on X, saying, “Delaware Supreme is saving the state.”

Directors Return $277 Million

Tesla directors, including Chair Robyn Denholm and James Murdoch, agreed to return approximately $277 million in cash and stock options to the company.

The settlement is worth $919 million, according to attorneys for shareholders in the Detroit firefighter and police pension fund.

Delaware Faces Fee Reform Pressure

Delaware’s bar association is preparing recommendations for state lawmakers on possible changes, Reuters reported.

The Supreme Court also stated the intrinsic value of returned stock options should have been excluded from settlement calculations.

Musk was not part of the settlement. He successfully defended his compensation in a separate case, with the Delaware Supreme Court overturning a 2024 ruling that had voided his 2018 Tesla pay package, calling the earlier decision improper and inequitable.

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