He’s always in the news. We are talking about Tesla chief executive Elon Musk.
The billionaire CEO is expected to mark his attendance in court on Monday and the stakes are quite high that day. If Musk loses the case against him by Tesla shareholders, he could have to pay more than $ 2 billion as settlement.
The Background
Musk will be the first witness in the trial to defend his role in Tesla’s $ 2.6 billion SolarCity acquisition.
The shareholders sued Musk and some other Tesla board members involved in the deal, claiming the 2016 deal with Solarcity was to bail out SolarCity and not in the best interest of Tesla shareholders.
They also alleged that it unfairly enriched the already-rich Musk family, who were among the biggest shareholders and that Musk and his team failed to disclose all the details and violated their obligations.
What Will Happen Tomorrow?
Musk emphasized that he had been “fully recused” from any kind of talks over the deal.
Last year, remaining board members who wete accused in the case decided to settle the matter for $ 60 million without acceptance of any wrongdoing.
But Musk, the world’s second richest man, was the only defendant who chose to take the case further to a court.
His verdict will be handed down by Delaware Chancery Court Judge Vice-Chancellor Joseph Slights III.
Past Legal Troubles
Musk has had his fair share of legal troubles beyond SolarCity in the past and it’s no new thing for the CEO.
For example, the SEC has sued him in 2018 for fraud. Musk had to settle it by paying $ 20 million each. Tesla, his company paid the same amount separately.
The lawsuit came after Musk wrote on Twitter of secretly taking Tesla private for $ 420 a share, a move that sent the price of Tesla shares surging dramatically. Musk has had to temporarily relinquish his position as Tesla chairman as part of the agreement.