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☆ Trump to be deposed in dispute with media company co-founders
▼ + stars: | 2024-04-04 | by ( ) www.cnbc.com time to read: +2 min

Republican presidential candidate Donald Trump is scheduled to be deposed later this month by lawyers for co-founders of his social media company as part of a dispute over ownership in Trump Media & Technology Group which went public last week. They said in 2021 they were pledged 8.6% of pre-merger Trump Media stock for helping to launch the company. Trump Media sued Litinsky and Moss in Florida on March 24, and is seeking to strip them of their stock, which it said they failed to earn due to mismanagement. Trump owned 90% of the social media company prior to its merger last month with a blank check firm that took the company public. In midday trade on Thursday, Trump Media was down 4.2% at $46.70, valuing the company at more than $6 billion.

Persons: Donald Trump, Christopher Clark, Andy Litinsky, Wes Moss, Litinsky, Sam Glasscock, Trump Organizations: Trump Media & Technology Group, Delaware's, Chancery, Trump Media, Trump, United Atlantic Ventures Locations: New York, Moss, Florida, Delaware, Washington, Georgia

Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc's annual shareholder meeting in Omaha, Nebraska, U.S., May 4, 2019. Berkshire owns 80% of Pilot, having paid the Haslams $2.76 billion for a 38.6% stake in 2017 and $8.2 billion for another 41.4% in January. The Haslams sued Omaha, Nebraska-based Berkshire in October, accusing it of seeking a "windfall" by adopting "pushdown" accounting for Pilot. Berkshire countersued on Nov. 28, saying Jimmy Haslam tried to bribe Pilot executives with millions of dollars to inflate earnings in 2023 at the expense of future years. According to court papers, the Haslams believe the 20% Pilot stake was worth $3.2 billion before Berkshire's accounting change, an amount Berkshire disputes.

Persons: Warren Buffett, Scott Morgan, Warren Buffett's Berkshire Hathaway, Jimmy Haslam, Chancellor Morgan Zurn, Haslam, Zurn, Berkshire, Berkshire countersued, Tom Hals, David Holmes Organizations: Berkshire Hathaway, REUTERS, Rights, Travel Centers, Cleveland Browns, Berkshire, Pilot, Thomson Locations: Omaha , Nebraska, U.S, Rights WILMINGTON , Delaware, Delaware, Delaware's, Berkshire, Knoxville , Tennessee, Wilmington , Delaware

The company wants Kathaleen McCormick, chief judge on the court, to approve a fee of no more than $64 million. The attorneys represented a Detroit police union pension plan that sued Tesla's directors for excessive compensation during 2017 to 2020. Nearly all of the directors' compensation comprised stock options and they only got paid if the stock rose. The 2020 lawsuit settled in July with the directors agreeing to return to Tesla $735 million as part of a $919 million agreement. The difference in the two values boils down to the stock options.

Persons: Thomas Peter, Kathaleen McCormick, Elon Musk's, James Murdoch, Rupert Murdoch, Larry Ellison, Tesla, Tom Hals, Noeleen Walder, David Gregorio Our Organizations: REUTERS, Oracle Corp, Tesla, Detroit, Oracle, Thomson Locations: Beijing, China, WILMINGTON , Delaware, Delaware, Delaware's Court, Wilmington , Delaware

The lawyers want a judge to approve $229 million in fees, or $10,690 an hour, according to a Sept. 8 filing in Delaware's Court of Chancery. The legal fee and the settlement must be approved by a Delaware judge at a hearing scheduled for October. The Telsa directors have not objected to the fee request but are expected to do so, according to a court filing by the plaintiffs' lawyers. In 2012, the Delaware Supreme Court affirmed a $304 million fee in a Southern Copper shareholder lawsuit involving $2 billion of damages. The Delaware Court of Chancery judge overseeing the Tesla case, Kathaleen McCormick, has scheduled a hearing on Oct. 13 to approve the settlement and the fee.

Persons: Tesla's, James Murdoch, Larry Ellison, Bleichmar Fonti, McCarter, Ronald King, Clark Hill, George Bauer, David Paige, Paige, Kathaleen McCormick, Tom Hals, Amy Stevens, Marguerita Choy Organizations: REUTERS, Partners, Bleichmar, Shukurov, Advisors, Southern, Thomson Locations: Oslo, Norway, Victoria, WILMINGTON , Delaware, Delaware's Court, Delaware, New York, Wilmington , Delaware, Lansing , Michigan

Companies Walt Disney Co FollowWILMINGTON, Delaware, June 27 (Reuters) - The Walt Disney Co (DIS.N) board did not act negligently when it criticized a sexual identity bill signed by Florida Governor Ron DeSantis, a Delaware judge ruled on Tuesday, in a case the judge said was improperly directed by a conservative legal group. The ruling by Lori Will of Delaware's Court of Chancery means that Disney will not have to turn over internal records including years of board members' emails sought by shareholder Kenneth Simeone, who sued Disney in December. Disney's criticism touched off a war of words with DeSantis and led to the state removing the company's control of a special administrative district that promotes development around the Walt Disney World resort. DeSantis, who is seeking the Republican presidential nomination, has used his battle against what he calls "woke Disney" to raise his national profile. Simeone, Jonna and Disney did not respond immediately to requests for comment.

Persons: Ron DeSantis, Lori Will, Kenneth Simeone, Will, Disney, Paul Jonna, Tom Hals, Jamie Freed Organizations: Walt Disney Co, Florida, Delaware's, Disney, Walt Disney, Thomas More Society, Thomson Locations: WILMINGTON , Delaware, Delaware, Wilmington , Delaware

☆ Judge to hear final arguments in trial over Musk's $56 billion Tesla pay
▼ + stars: | 2023-02-21 | by ( Tom Hals | Thomson Reuters | Award-Winning Reporter With More Than Two Decades Of Experience In International News | ) www.reuters.com time to read: +2 min

[1/2] Tesla vehicles are shown at a Tesla service center in San Diego, California, U.S., January 13, 2023. REUTERS/Mike BlakeCompanies Tesla Inc FollowWILMINGTON, Del, Feb 21 (Reuters) - Lawyers for Elon Musk and a Tesla Inc (TSLA.O) investor will make closing arguments on Tuesday in a trial over his $56 billion pay package and whether it fueled the electric carmaker's growth or improperly subsidized Musk's dream of one day traveling to Mars. The arguments follow a five-day trial in November that featured testimony from the Tesla chief executive about the origins of the 2018 pay package and whether its performance goals were difficult to achieve and accurately described to investors. Musk, who founded rocket company SpaceX, admitted during his testimony that his pay package provided funds he would use to finance interplanetary travel. His lawyers also argued the pay plan benefited shareholders by increasing the value of their stock 10 times.

An attorney for Musk, as well as Tesla and several directors who are also defendants, declined to comment. Musk surrendered the Tesla chairman position and agreed to let a company lawyer vet some of his tweets. He won a bench trial in Delaware's Court of Chancery last year over claims by Tesla shareholders that he allegedly coerced the Tesla board into buying SolarCity, a rooftop solar panel maker. Tesla shareholders had sought billions in damages and they have appealed. Around half are dismissed for failing to comply with securities law and most of the rest are settled.

They argued the pay package did what it aimed to do -- ensure the entrepreneur successfully guided Tesla through a critical period which helped drive the stock 10-fold higher. The Tesla shareholder lawsuit argues that the pay package should have required Musk to work full time at Tesla. In all, 19 witnesses are scheduled, including directors and executives from 2018, compensation experts and advisors who helped craft the pay package. Tesla has hit 11 of the 12 targets as its value ballooned briefly to more than $1 trillion from $50 billion, according to court papers. A decision will likely take around three months after the trial and could be appealed to the Delaware Supreme Court.

[1/2] SpaceX Chief Engineer Elon Musk gestures during a joint news conference with T-Mobile CEO Mike Sievert at the SpaceX Starbase, in Brownsville, Texas, U.S., August 25, 2022. REUTERS/Adrees LatifCompanies Twitter Inc FollowTesla Inc FollowWILMINGTON, Del., Nov 7 (Reuters) - As Elon Musk is engulfed in his overhaul of Twitter, the entrepreneur is headed to trial to defend his record $56 billion Tesla Inc pay package against claims it unjustly enriches him without requiring his full-time presence at the carmaker. The disputed pay package allows Musk to buy 1% of Tesla's stock at a deep discount each time escalating performance and financial targets are met; otherwise Musk gets nothing. Does Elon Musk work for the board or does the board work for Elon Musk," said Minor Myers, a professor at UConn School of Law. Myers said if the pay package is rescinded, the board could simply create a new one and do so with McCormick's ruling to guide them.

$55 BILLION TESLA PAY LAWSUITA shareholder of Tesla wants a judge to find that Musk's Tesla pay package, which is estimated to be worth $55 billion, unjustly enriches Musk. read more read moreTesla has said it does not tolerate discrimination and has taken steps to address workers' complaints. LAWSUITS SPARKED BY MUSK'S TWEETSIn August 2018, Musk sent a tweet that he had "funding secured" to take Tesla private, sending shares sharply higher. Tesla shareholders are suing in Delaware to tighten oversight of Musk's tweets about the company. read moreJPMorgan Chase & Co (JPM.N) also sued Tesla in November for $162.2 million, saying it was forced to reprice Tesla stock warrants after the 2018 tweet.

SpaceX Chief Engineer Elon Musk takes part in a joint news conference with T-Mobile CEO Mike Sievert (not pictured) at the SpaceX Starbase, in Brownsville, Texas, U.S., August 25, 2022. Tesla CEO Elon Musk is now in charge of Twitter , CNBC has learned. Twitter CEO Parag Agrawal and finance chief Ned Segal have left the company's San Francisco headquarters and will not be returning, sources said. A Delaware Chancery Court judge eventually ruled that Musk had until Oct. 28 to cement the Twitter deal or head to trial. Musk arrived at the Twitter headquarters earlier this week carrying a sink, and documented the event on Twitter, saying "Entering Twitter HQ – let that sink in!"

☆ Twitter lawyer tells court Musk has not backed up claims of fake accounts
▼ + stars: | 2022-09-27 | by ( Tom Hals | Thomson Reuters | Award-Winning Reporter With More Than Two Decades Of Experience In International News | ) www.reuters.com time to read: +2 min

Documents obtained from two data scientists employed by Musk showed they estimated in early July that the number of fake accounts on the platform at 5.3% and 11%, the Twitter lawyer told a Delaware judge. "None of these analyses so far as we can tell remotely supported what Mr. Musk told Twitter and told the world in the termination letter," said the lawyer, Bradley Wilson. Musk and Twitter are locked in a court fight and Twitter is seeking an order directing Musk to close the deal at $54.20 per share. They are scheduled to go trial starting Oct. 17 in Wilmington, in Delaware's Court of Chancery. On July 8 Musk said the actual figure was "wildly higher" and that Twitter had misled him, allowing him to walk away without penalty from the deal.

Register now for FREE unlimited access to Reuters.com RegisterAn image of Elon Musk is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/IllustrationWILMINGTON, Del, Sept 20 (Reuters) - Twitter Inc (TWTR.N) will question Elon Musk under oath in Delaware next week as part of the litigation in the billionaire's bid to walk away from his $44 billion deal for the social media company. A Tuesday filing in Delaware's Court of Chancery said Musk's deposition is scheduled for Sept. 26-27 and may stretch into Sept. 28 if necessary. Twitter wants a judge to order Musk, who is chief executive of Tesla Inc (TSLA.O) and the world's richest person, to buy the company as agreed for $54.20 per share. Register now for FREE unlimited access to Reuters.com RegisterReporting by Tom Hals in Wilmington, Delaware; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

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