© Reuters. FILE PHOTO: Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. REUTERS/Gon
By Tom Hals and Jody Godoy
(Reuters) -Elon Musk and the Tesla (NASDAQ:) shareholder who won a verdict last month voiding the CEO’s $56 billion pay package will ask a judge to pause her ruling until an appeal is resolved, according to a Tuesday letter to the court from the shareholder’s attorney.
Greg Varallo, the shareholder’s attorney, said the two sides will agree to a stay if they can reach a deal on an appeal bond.
The letter is the first indication that Musk intends to appeal the ruling, which the billionaire has criticized on social media, saying he will seek shareholder approval to move Tesla’s state of incorporation to Texas, where it has its headquarters.
Before Musk can appeal, the two sides will propose a final order for approval by the judge, Kathaleen McCormick (NYSE:), which will include a petition for a legal fee.
That fee will be paid by Tesla and given the enormous verdict, it is likely to be among the largest ever. It will likely be opposed by Tesla.
Varallo said he intends to file the fee petition by March 1.
If McCormick approves the fee and final order, Musk would have 60 days to file an appeal with the Delaware Supreme Court, which would likely take at least six months to resolve.
