Title: Lawyers in Tesla Investor Lawsuit Request $6 Billion in Stock for Legal Fees

Lawyers representing a Tesla Inc. investor who successfully challenged Elon Musk's $55.8 billion pay package have made an unconventional request to have their legal fees paid in the form of approximately $6 billion worth of stock in the electric-car maker. On Friday, attorneys for shareholder Richard Tornetta filed the request in Delaware state court, arguing that they deserve more than 29 million Tesla shares.

In their court filing, Tornetta's lawyers explained their preference for stock, stating, "We are prepared to 'eat our cooking.' This structure has the benefit of linking the award directly to the benefit created and avoids taking even one cent from the Tesla balance sheet to pay fees. It is also tax-deductible by Tesla."

Elon Musk responded to the request on his social media platform, X, late Friday, calling the lawyers who had supposedly damaged Tesla "criminals" for seeking $6 billion. Tesla, with a valuation of $645 billion, is one of the world's largest companies by market cap.

Ann Lipton, a corporate law professor at Tulane University, expressed surprise at the size of the attorney fee request, calling it the largest she has ever heard of. Lipton also speculated on why the lawyers preferred stock compensation, suggesting that seeking $6 billion in cash could harm Tesla and its shareholders. By requesting stock instead, the lawyers may have sought to make the impact on Tesla's shareholders less severe.

As a result of Tornetta's victory in the case, approximately 267 million shares promised to Musk in his pay plan will be returned to Tesla, according to the court filing. The filing represents a significant step towards finalizing Delaware Chancery Court Chief Judge Kathaleen St. J. McCormick's conclusion that Tesla directors were influenced by conflicts of interest when approving Musk's excessive compensation plan. The judge also criticized Tesla's public disclosure surrounding the pay package.

Once McCormick enters a final judgment in the case, Musk will have 30 days to decide whether to appeal her ruling under Delaware law. Musk has indicated his desire for another substantial stock award, expressing his discomfort with not having sufficient voting control while growing Tesla as a leader in AI and robotics. Some experts have questioned whether Musk's focus on Tesla will be affected without another large pay package. Tesla directors cited this concern when approving the plan that McCormick voided in January.

In response to McCormick's ruling, Musk has relocated all his companies, except Tesla, out of Delaware for incorporation purposes. He has also encouraged other business owners to do the same, despite the fact that Delaware remains the corporate home to over 70% of Fortune 500 companies.

The case, titled Tornetta v. Musk, 2018-0408, is currently being heard in the Delaware Chancery Court in Wilmington.