According to ChainCatcher, the Delaware Chancery Court judge has again rejected Tesla CEO Musk's $55.8 billion compensation plan, as reported by X Daily News. The judge ruled based on the following three reasons:
Shareholder votes cannot retroactively validate breaches of fiduciary duty, especially in transactions involving conflicts of interest;
Tesla did not raise the ratification argument during the trial, making it procedurally invalid;
The materials used for soliciting votes are misleading, undermining the legitimacy of the vote.
Additionally, the court 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 undermine the deterrent effect of lawsuits aimed at holding corporate leaders accountable for misconduct.