According to ChainCatcher news, reported by X Daily News, a Delaware Chancery Court judge has again dismissed Tesla CEO Elon Musk's $55.8 billion compensation plan. The judge ruled based on the following three reasons:
Shareholder votes cannot retroactively validate breaches of fiduciary duty, especially in transactions with conflicts of interest;
Tesla did not raise the argument of ratification during the trial, making it procedurally invalid;
The materials used for soliciting votes are misleading and undermine the legitimacy of the voting.
Furthermore, the court also rejected Tesla's attempt to use shareholder votes as new evidence to overturn the previous ruling. The court emphasized that post-trial evidence cannot be used in this manner, as allowing such a strategy would weaken the deterrent effect of lawsuits aimed at holding corporate leaders accountable for misconduct.