Judge approves settlement in lawsuit that Tesla’s board overpaid itself

A judge approved the settlement, which finally ends the case against Tesla by the City of Detroit Police and Fire Retirement System. Shareholders allege that Tesla’s board of directors overpaid itself between 2017 and 2020.

Chancellor Kathleen McCormick of the Delaware Court of Chancery approved the settlement yesterday. Tesla executives will have to return approximately $277 million in cash and $459 million in stock options, as well as give up stock options for 2021-2023. worth $184 million. McCormick also awarded $176 million in fees and costs to the trio of law firms that filed the contingency suit.

Some of the notable directors named in the suit include chairman Robin Denholm, James Murdoch (son of Fox News owner Rupert Murdoch) and Larry Ellison (co-founder of Oracle). The board members did not admit wrongdoing, and the settlement does not specify how much each must pay back, only the total amount.