April 14, 2024
Elon Musk lost $56 billion because of a thrash metal drummer


Elon Musk: Grzegorz Wajda/SOPA Images/LightRocket Getty Images/Bullhead, via YouTube

Published: February 2, 2024, 11:39 am

A former heavy metal drummer named Richard Tornetta has successfully sued Tesla CEO owner Elon Musk, awarding him $56 billion in damages.

Tornetta once played drums for the thrash metal band Dawn of Correction, formed in 2005 – the band has been defunct since 2009. During the time they were active, Dawn of Correction released one EP and one studio album; the title of that ep is swing the chainand the title of the lp is dead hand control,

Tornetta sued Musk in 2018 and the case went to trial in 2022, Reuters reported. Tornetta owned nine shares in Tesla at the time he initially sued Musk. Tornetta’s lawsuit against the CEO was on Tesla’s behalf in what is known as a “shareholder derivative lawsuit.” In his lawsuit, Tornetta “alleges that Musk dictated the terms of the pay package to the billionaire’s grateful board of directors and claims it was then put to a vote of shareholders, who were concerned about the difficulty of reaching certain goals.” Was misled.”

The lawsuit further details: “The pay package in question allows Musk to buy 1% of Tesla stock at a steep discount every time it meets incremental performance and financial goals; Otherwise Musk gets nothing.

According to court documents, “Tesla achieved 11 of 12 goals as its valuation briefly soared from $50 billion to more than $1 trillion. Musk and directors argued in court filings that the package kept Musk focused on Tesla during a difficult period and led to a 10-fold increase in the stock price.

Last Tuesday (January 30), a judge ruled in Tornetta’s favor, resulting in his massive pay deal being voided for being unfair to Musk and other Tesla shareholders. Regarding his decision, Chancery Court Chancellor Kathleen McCormick asked (via CNBC), “Was the world’s richest man overpaid?”

McCormick adds, “So says the stockholder plaintiff in this derivatives lawsuit. He claims that Tesla, Inc. The directors of Inc. breached their fiduciary duties by providing a performance-based equity-compensation plan to Elon Musk.”

He wrote, “In the final analysis, Musk initiated a self-driving process, reprogramming speed and direction in the manner he deemed appropriate. An unfair price had to be paid in this process. And through this lawsuit, the plaintiff requests a recall.

McCormick ruled that Tornetta was able to prove that Musk “controlled Tesla”, and that the process by which the board approved Musk’s compensation was “deeply flawed”.

In a statement, Tornetta’s attorney Greg Varallo says, “We are extremely grateful for the Court’s thorough and exceptionally reasoned decision to return the Tesla board’s absurdly inflated pay package for Musk.

“The court’s hard work will directly benefit Tesla investors, who will see their cut from this massive pay package wiped out.”

Below you can watch a video of Richard Tornetta’s drumming skills.

Richard Tornetta plays “Shadows” from Dawn of Correction

Source: www.wearethepit.com

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