Tesla Wins Appeal as Delaware Supreme Court Slashes Attorney Fees in Director Pay Case

Delaware’s Supreme Court ruled on Friday to significantly reduce the attorneys’ fees Tesla must pay in a lawsuit over director compensation. The case was brought by shareholders, represented by the Detroit Fire and Police Retirement System, who had previously won a ruling accusing Tesla’s board of awarding itself excessive pay. The trial court had ordered Tesla to pay $176.1 million in legal fees, but the state’s high court deemed that amount excessive and slashed it to $70.9 million—a reduction of over $100 million, or 60%. The court stated that the trial judge had overestimated the value of the settlement when calculating the fees. The ruling marks a key legal victory for Tesla, substantially easing its financial burden.