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Delaware Court Reduces Tesla Settlement to $70.9 Million

1/31/2026

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Summary

Story summary

The Delaware Supreme Court ruled in favor of Tesla on January 30 and reduced fees to $70.9 million.
It said the lower court overvalued the settlement, which involved directors returning about $277 million to the company.
Shareholders initially valued the settlement at $919 million, but the court excluded the value of returned stock options.
Elon Musk, who defended his compensation in a separate suit, was not part of this settlement.

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Story summary

The Delaware Supreme Court ruled in favor of Tesla on January 30 and reduced fees to $70.9 million.
It said the lower court overvalued the settlement, which involved directors returning about $277 million to the company.
Shareholders initially valued the settlement at $919 million, but the court excluded the value of returned stock options.
Elon Musk, who defended his compensation in a separate suit, was not part of this settlement.