this post was submitted on 20 Feb 2024
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Kathaleen McCormick’s no-nonsense rulings have earned the Tesla chief’s ire -— and the corporate law world’s respect

Few people in the world have the power to order around Elon Musk. One of them is a soft-spoken, small-town-raised, 44-year-old Delaware judge named Kathaleen McCormick.

When the planet’s richest person tried to back out of buying Twitter in 2022, it was McCormick who stood in the way, taking a no-nonsense approach to a lawsuit that ended with Musk backing down and completing the deal. And last month, it was McCormick who issued a landmark ruling against Musk in a Tesla shareholder lawsuit that could end up costing him some $50 billion and his title as the world’s richest person.

The decision, which found that Musk’s control over Tesla’s board led it to grant him an unfairly lavish compensation deal, left Musk fuming. “Never incorporate your company in the state of Delaware,” he posted on X, before pledging to hold a vote of Tesla shareholders on moving the company’s incorporation to Texas. The case is ongoing, with the two sides set to wrangle next over attorneys’ fees before a likely appeal to the Delaware Supreme Court later this year.

While Tesla has yet to hold a shareholder vote, Musk announced Tuesday that he has filed to move the incorporation of his privately held space company, SpaceX, from Delaware to Texas.

Original Washington Post link

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[–] [email protected] 36 points 6 months ago

"Never incorporate your business in the most business friendly state in the union!"

Man PG really is one of the dumbest motherfuckers out there.

[–] [email protected] 25 points 6 months ago (1 children)

Interesting to see what happens, if he moves his companies to Texas. Texas is very rich, he'll just be another large company in Texas and nothing special. Many companies register in Delaware because of the lacks tax laws. I bet he won't find what he is looking for in Texas; a blind cult following.

[–] [email protected] 25 points 6 months ago

Lax.

And of fucking course he won't find what he wants in Texas, because what he wants is his own fucking fiefdom.

[–] [email protected] 18 points 6 months ago (1 children)

So how soon will she start getting threats from right wingers?

[–] [email protected] 26 points 6 months ago (1 children)
[–] [email protected] 11 points 6 months ago

Good point!

[–] [email protected] 13 points 6 months ago (1 children)

Until reading this article, I never knew that Musk even had a brother. Considering the press Musk has gotten, though, that probably suits the brother just fine.

[–] [email protected] 20 points 6 months ago (1 children)

his father and his brother once gave a tv interview and both said elon is a bad person. so i just assume brother and dad are rich too and also bad people. pretty sure the entire musk clan is a problem for all of us.

[–] [email protected] 22 points 6 months ago (1 children)

His father who owned shares in an apartheid era emerald mine? Elon's a garbage person, but I wouldn't look to his dad for moral guidance.

[–] [email protected] 8 points 6 months ago

The father, who got his stepdaughter pregnant, who was 4 years old when he married her mother.

[–] [email protected] 10 points 6 months ago* (last edited 6 months ago) (1 children)

Jokes on him if he moves his company to Texas. I don't trust companies not incorporated in the State of Delaware.

(mostly because I like to be reminded that Delaware actually exists)

[–] [email protected] 2 points 6 months ago

Does Delaware exist? Has anyone been there, or just heard of it??