Tesla CEO Elon Musk's just might get shredded this time.
Richard Tornetta, a former metal drummer who made a small investment in Tesla, sued CEO Elon Musk and the company's board in what is called a "shareholder derivative lawsuit" back in 2018, Reuters reports.
The case survived a 2019 motion to dismiss and is set to kick off in a Delaware court on Monday — which will feature Musk's own testimony and Kathaleen McCormick, the same judge who oversaw his initial bid to get out of his chaotic Twitter deal.
If Tornetta were to win, Musk would have to rescind his 2018 stock grants pay package worth $55 billion, a potentially devastating blow, especially considering the fact that Musk has already been selling off appreciable amounts of Tesla stock to fund his acquisition of Twitter.
While these kinds of lawsuits are usually dismissed as "nuisance suits" by business groups, "this case looks different," as Jessica Erickson, a professor at University of Richmond School of Law, told Reuters.
Tornetta, who runs an aftermarket car parts company and used to drum for a now-defunct metal band called "Dawn of Correction," maintains Tesla's board had undisclosed conflicts.
His suit alleges that Musk came up with his own pay plan with help of with his former divorce attorney Todd Maron, who also happened to sit on Tesla's general counsel until late 2018, CNBC reported back in March.
Musk also allegedly set the bar too low for hitting 12 performance targets, as laid out in the 2018 stock grants plan. The plan allows Musk to buy one percent of Tesla stock at a significant discount for each met target.
So far, Tesla has hit 11 out of the 12 targets, according to Reuters, but Tornetta's lawyers argue that three of those goals had already been met when shareholders met to vote on the pay package, something they say wasn't properly disclosed.
Musk and his legal team maintain that the targets kept Musk on track during a difficult time, and eventually led to a massive rise in stock price.
"The plan designed and approved by the board was not a typical pay package intended to compensate the ordinary executive for overseeing the day-to-day operations of a mature company," Musk's attorney said during a pre-trial brief, as quoted by Bloomberg, arguing that the situation called for an extraordinary pay package.
For now, all we can do is wait and see whether the lawsuit will bang heads in court.
READ MORE: Elon Musk braces for $56 billion battle with heavy metal drummer [Reuters]
More on Tesla: Tesla Issues Software Patch So That Its Cars Don't Lose Power Steering on Potholes
The post Elon Musk Might Get Thrashed by Lawsuit From Heavy Metal Drummer appeared first on Futurism.
See the original post here:
Elon Musk Might Get Thrashed by Lawsuit From Heavy Metal Drummer
- 2D Laser Profiling Scanner for Detecting Targets - November 8th, 2009 [November 8th, 2009]
- NASA Energy Concept Could Harness the Power of Ocean Waves - November 8th, 2009 [November 8th, 2009]
- Data Acquisition Modules - November 8th, 2009 [November 8th, 2009]
- Dr. Scott Barthelmy, Research Scientist, Laboratory for High Energy Astrophysics, Goddard Space Flight Center, Greenbelt, MD - November 8th, 2009 [November 8th, 2009]
- Laser Tracker Ensures Accurate Alignment of Ares I Components - November 8th, 2009 [November 8th, 2009]
- Dual Cryogenic Capacitive Density Sensor - November 8th, 2009 [November 8th, 2009]
- Advanced Technologies Will Help Hubble Yield More Remarkable Discoveries - November 8th, 2009 [November 8th, 2009]
- Dr. Gerard Holzmann, Senior Research Scientist at the Laboratory for Reliable Software, NASA’s Jet Propulsion Laboratory - November 8th, 2009 [November 8th, 2009]
- NASA Research Will Help Aircraft Avoid Ocean Storms and Turbulence - November 8th, 2009 [November 8th, 2009]
- NASA Awards 2008 Software of the Year - November 8th, 2009 [November 8th, 2009]
- Here Come The Tricorders - Update - November 8th, 2009 [November 8th, 2009]
- China's View on Space - November 8th, 2009 [November 8th, 2009]
- Milsat Coordination and Tracking Issues - November 8th, 2009 [November 8th, 2009]
- Trash Talking and End Runs at NASA HQ - November 8th, 2009 [November 8th, 2009]
- Ares 1-Y is Toast - November 8th, 2009 [November 8th, 2009]
- Beyond Augustine - November 8th, 2009 [November 8th, 2009]
- Analyzing LCROSS' Plume - November 8th, 2009 [November 8th, 2009]
- Live Event: NASA-Sponsored Power Beaming Challenge - November 8th, 2009 [November 8th, 2009]
- JSC Wants To Build a Replicator - November 8th, 2009 [November 8th, 2009]
- USA: Looking For Ways To Hang On - November 8th, 2009 [November 8th, 2009]
- Lunar Lander Challenge Prizes Awarded - November 8th, 2009 [November 8th, 2009]
- Senate Votes To Restore NASA Budget Cuts - November 8th, 2009 [November 8th, 2009]
- New FAA Regs for Commercial Reentry - November 8th, 2009 [November 8th, 2009]
- TEDxNASA: An Invitation-Only NASA Meeting - Unless You Are Lucky - November 8th, 2009 [November 8th, 2009]
- Close Call For Courtney Stadd - November 8th, 2009 [November 8th, 2009]
- Space: A Waste? - November 8th, 2009 [November 8th, 2009]
- Making NASA Cool - November 8th, 2009 [November 8th, 2009]
- Engaging JSC’s Next Gen: A Leadership Analysis - November 8th, 2009 [November 8th, 2009]
- Dumpster Diving for Rockets - November 8th, 2009 [November 8th, 2009]
- TEDx NASA - November 8th, 2009 [November 8th, 2009]
- Reflections On a Business Trip in Huntsville - November 8th, 2009 [November 8th, 2009]
- Staying the Course - November 8th, 2009 [November 8th, 2009]
- The Economics of Space - November 8th, 2009 [November 8th, 2009]
- Ideas at Work - November 8th, 2009 [November 8th, 2009]
- Blah Blah Blah - Why We Should Care About Social Media - November 8th, 2009 [November 8th, 2009]
- Will White House Speak Soon About NASA? - December 12th, 2009 [December 12th, 2009]
- Software Aids Design of Ares V Composite Shroud Structure - December 13th, 2009 [December 13th, 2009]
- ASDX Series of silicon pressure sensors - December 13th, 2009 [December 13th, 2009]
- Industry Update: Analysis & Simulation Software - December 13th, 2009 [December 13th, 2009]
- Battery Will Provide Backup Power for Space Shuttles - December 13th, 2009 [December 13th, 2009]
- NASA Employee Claims To Have Witnessed Hijacking Planning - December 13th, 2009 [December 13th, 2009]
- Big Party in The Mojave Tonight - December 13th, 2009 [December 13th, 2009]
- Looking at Boulders on the Moon - December 13th, 2009 [December 13th, 2009]
- SpaceBook Featured by White House - December 13th, 2009 [December 13th, 2009]
- New Ways to Use Constellation Stuff - December 13th, 2009 [December 13th, 2009]
- LaRC internal Poll Update - December 13th, 2009 [December 13th, 2009]
- Coalition for Space Exploration Does a (Much Needed) Reboot - December 13th, 2009 [December 13th, 2009]
- Lunar Orbiter: Comparing Old and New Images - December 13th, 2009 [December 13th, 2009]
- Boulder Trails On The Moon - December 13th, 2009 [December 13th, 2009]
- Vote for John Grunsfeld - National Geographic Adventurer of the YeAR - December 13th, 2009 [December 13th, 2009]
- Charlie Bolden at WIA/AIAA - December 13th, 2009 [December 13th, 2009]
- Live Webcast From The Lunar Orbiter Image Recovery Project - December 13th, 2009 [December 13th, 2009]
- Big Aerospace Warns of Job Cut Impact - December 13th, 2009 [December 13th, 2009]
- The Boulders of Copernicus - December 13th, 2009 [December 13th, 2009]
- shame on us - December 13th, 2009 [December 13th, 2009]
- 2009 Space Elevator Games - December 13th, 2009 [December 13th, 2009]
- Random Hacks of Kindness - December 13th, 2009 [December 13th, 2009]
- TEDx NASA Tickets Available to the Public - December 13th, 2009 [December 13th, 2009]
- It’s better in person - December 13th, 2009 [December 13th, 2009]
- Leading Amidst the Disruptive Innovation Storm - December 13th, 2009 [December 13th, 2009]
- Space: What’s NOT to Hope for? - December 13th, 2009 [December 13th, 2009]
- Government in the Digital Age - December 13th, 2009 [December 13th, 2009]
- SpaceUp – A Space Unconference - December 13th, 2009 [December 13th, 2009]
- Starfleet Academy? - December 13th, 2009 [December 13th, 2009]
- Crowdsourcing NASA - December 13th, 2009 [December 13th, 2009]
- Bringing Home The Bacon - December 14th, 2009 [December 14th, 2009]
- Anti-Space Mom with Pro-Space Kids - December 14th, 2009 [December 14th, 2009]
- How Quickly We Forget - December 14th, 2009 [December 14th, 2009]
- WISE Launch A Success - December 14th, 2009 [December 14th, 2009]
- Dynetics Buys Orion Propulsion - December 15th, 2009 [December 15th, 2009]
- New NASA Governance Structure Under Development - December 16th, 2009 [December 16th, 2009]
- Bolden Meets With Obama on Wednesday - December 16th, 2009 [December 16th, 2009]
- MSFC Procurement Doesn't Understand what "Open Source" Means - December 16th, 2009 [December 16th, 2009]
- Bolden Meets With Obama - December 17th, 2009 [December 17th, 2009]
- Parker Griffith AT MSFC Today - December 18th, 2009 [December 18th, 2009]
- Why Your NASA Computer May Not Work Properly - December 18th, 2009 [December 18th, 2009]
- Lakes and Fog on Titan - December 18th, 2009 [December 18th, 2009]
- Waterworld Found - December 18th, 2009 [December 18th, 2009]
- Pandora Could Exist - December 18th, 2009 [December 18th, 2009]
- Laurie Leshin Is The New ESMD Deputy AA - December 18th, 2009 [December 18th, 2009]