News & Analysis as of

Controlling Stockholders Delaware Entire Fairness Standard

Lowenstein Sandler LLP

Delaware Supreme Court Upholds Heightened Protection for Controlling Stockholder Transactions

Lowenstein Sandler LLP on

On Feb. 27, the Delaware Supreme Court in Rutledge v. Clearway Energy Group LLC, No. 248, 2025 (Del. Feb. 27, 2026), upheld the constitutionality of recent amendments to Section 144 of the Delaware General Corporation Law...more

Mayer Brown

Delaware Law Alert: Delaware Supreme Court Upholds Safe Harbor Procedures for Conflicted Transactions

Mayer Brown on

In a decision with significant implications for transactions involving controlling stockholders and other conflicted fiduciaries, the Delaware Supreme Court has upheld the constitutionality of a series of amendments to...more

Cadwalader, Wickersham & Taft LLP

Delaware Supreme Court Rejects Total Rescission of Musk Pay

On December 19, 2025, the Delaware Supreme Court overturned the rescission of Elon Musk’s 2018 Tesla compensation grant and instead awarded nominal damages and substantially reduced attorneys’ fees. The case stemmed from a...more

Katten Muchin Rosenman LLP

Delaware Supreme Court Restores Tesla’s 2018 Performance-Based Equity Award to Elon Musk

On December 19, 2025, the Delaware Supreme Court reversed the Court of Chancery’s decision rescinding Elon Musk’s 2018 Tesla compensation package, thereby restoring to Musk an award that is now worth more than $100 billion....more

A&O Shearman

Delaware Supreme Court Upholds Award Of Nominal Damages To Plaintiffs Unharmed By Unfair Conflicted Controller Transaction

A&O Shearman on

On December 3, 2025, Chief Justice Collins Seitz, on behalf of the Delaware Supreme Court sitting en banc, upheld the Court of Chancery’s award of nominal damages in an action against a conflicted controller for breach of his...more

Jones Day

Delaware Court Applies Traditional Entire Fairness Standard to Very Large Stockholder-Approved, Performance-Based Equity Award

Jones Day on

The Case: A Tesla stockholder sued Tesla's board of directors to rescind a performance-based stock option grant awarded to Elon Musk, Tesla's CEO. The option award was worth a total of $56 billion and offered the opportunity...more

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