Lawyers representing the side that won the case against Tesla CEO Elon Musk’s excessive pay are now requesting the judge to compensate them with company stock valued at $5.6 billion in legal fees.

The lawyers representing Tesla shareholders in the January case have filed a request with the Delaware judge in documents submitted on Friday.

If approved, the sum of money would be significantly larger than any previous awards. In 2008, attorneys involved in class-action lawsuits related to the Enron scandal received a historic amount of $688 million in legal fees.

“We are ready to reap the rewards of our labor,” stated the attorneys representing the plaintiff in the Tesla case, justifying their requested sum as they worked solely on a contingency basis for over 5 years. They stated that if they had lost, they would have received no compensation. According to the attorneys, Tesla received a significant benefit from their services.

The requested award represents 11% of the Tesla stock — worth some $55 billion — that Musk was seeking in the compensation package, which Judge Kathaleen St. Jude McCormick ruled illegal in January.

The lawyers argued that the company’s balance sheet will not be impacted and the request is tax-deductible. They are also requesting $1.1 million for expenses.

Judge McCormick agreed with the shareholders’ attorneys’ assertion that Musk single-handedly determined the noteworthy 2018 compensation plan through deceitful negotiations with non-neutral board members.

This would have almost multiplied Musk’s ownership in Tesla by two-fold. At present, he possesses 13%.

Source: wral.com