In Re Tesla, Inc. Director Compensation Stockholder Litigation

Summary

The Court affirmed approval of the derivative settlement but reversed the attorney-fee calculation. It held that the intrinsic value of unexercised options returned for cancellation was not a financial benefit to Tesla and could not be included in the common-fund calculation, reducing the fee award to $70,918,136. The Court also held that settlement approval was within the Court of Chancery’s discretion.