As of Friday, 3% of Tesla’s stocks were about 97 million shares, worth about $34 billion. That’s far higher than the nine shares owned by Richard Tornetta, when he sued Tesla CEO Elon Musk and several directors for a $56 billion compensation package in 2018. Last year, the Delaware judge was invalid, with the tornado, and said it was unfair to Tesla shareholders, Musk filed an appeal in March to restore his compensation plan.
The amendment to the Tesla’s by now formed in Texas on Thursday followed a new law in the state this week that allows companies to set up up to 3% of their shares in derivative lawsuits in derivative lawsuits, which is “a new restrictive rule to limit abuse of shareholder litigation.”
Shareholders or shareholder groups file derivative lawsuits against their directors or senior management on behalf of the company or shareholders, alleging that they breach their fiduciary obligations.
