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US Judge Rejects Musk’s $55.8bn Tesla Pay Deal

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Elon Musk listens as US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC on November 13, 2024. (Photo by Allison ROBBERT / POOL / AFP)

 

A US judge upheld her decision to reject Elon Musk’s massive $55.8 billion compensation package at Tesla, denying an attempt to restore the pay deal through a shareholder vote on Monday.

In a court filing, Chancellor Kathaleen McCormick of Delaware’s Court of Chancery ruled that Tesla’s attempt to ratify Musk’s compensation package through a June shareholder vote could not override her January decision striking down the package as excessive and unfair to shareholders.

McCormick found multiple flaws in Tesla’s ratification attempt, including “material misstatements” in documents provided to shareholders about the effect of their vote.

“The motion to revise is denied,” McCormick wrote.

“The large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law,” she added.

In a statement on Musk’s X social media platform, Tesla said it would appeal the verdict.

“Shareholders should control company votes, not judges,” said Musk, in a separate post.

The court also awarded $345 million in attorney fees, significantly less than the $5.6 billion requested by the lawyers of plaintiff Richard Tornetta, a Tesla shareholder.

While acknowledging their calculation method was technically sound under Delaware law, which bases fees on the percentage of benefit achieved, McCormick ruled that such a large award would constitute an excessive windfall.

Shareholders originally backed the Musk compensation plan in March 2018, specifically designed to reward the 53-year-old founder for Tesla’s significant growth.

But in a lawsuit, Tornetta accused the defendants of failing in their duties when they authorized the pay plan and alleged that Musk dictated his terms to directors, who were not sufficiently independent from their star CEO.

He also accused Musk of “unjustified enrichment” and asked for the annulment of a pay program that helped make the entrepreneur the richest man in the world.

During a trial in 2022, Musk countered that investors in Tesla were some of the “most sophisticated in the world” and able to keep tabs on his management.

He said Tesla had been the laughingstock of the auto industry, and it was only the massive success of the company’s Model 3 that turned things around.

Musk insisted that he played no role in coming up with the package nor discussed his deal with the board members, some of them close friends, who ultimately signed off on it.

The Delaware Court of Chancery has been a pillar of US capitalism for more than a century and is the jurisdiction where roughly two-thirds of American Fortune 500 companies are registered.

Musk on Monday reposted other users’ X posts calling for companies to leave Delaware.

 

 

 

 

 

 

 

 

 

 

 

AFP

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Paraguay’s President Santiago Peña Impeached And Arrested Over Bank Collapse 

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Paraguay’s President Santiago Peña has been impeached and placed under house arrest.

 

Peña was arrested on Friday minutes after lawmakers, including from his own party, voted to remove him from office due to a crisis triggered by the collapse of Ueno Bank earlier this week.

He had offered to step down on Thursday, but the move to impeach him and charge him with misconduct rather than accept his resignation meant he was stripped of his lifetime Senate seat and the immunity granted to ex-presidents.

Peña, who until last year held shares in the company that owned the bank, has denied any wrongdoing.

The demise of the digital bank has left more than half of Paraguay’s population without access to their savings after it was seized by Paraguay’s central bank.

An estimated three million depositors remain unable to access their savings and pensions prompting widespread protests particularly in the capital, Asunción.

The impeachment charges that led to Peña’s removal alleged he had conflicts of interest, manipulated regulatory oversight, diverted pension funds, and participated in an institutional cover-up involving the central bank.

Peña is due to be questioned today (Saturday) over allegations of breach of trust, influence peddling, and misappropriation of funds, prosecutor Silvia Margarita Gonzalez Vester said.

Peña’s impeachment passed with 44 out of 45 senators voting in favour of it. One lawmaker was absent.

Afterwards, senate president Basilio Núñez said Peña was found guilty of “dereliction of duty”.

Paraguay’s Vice-President Pedro Alliana was then sworn in as interim President.

“Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,” said Alliana, who will serve as President until 2028.

Pedro Alliana takes the oath of office as interim President

Senator Rafael Filizzola said: “We are facing the biggest corruption scandal in our democratic history – a tremendous blow to the state, to private citizens, and to the country’s credibility and image.”

Analysts say Peña is likely to now be prosecuted over the bank’s collapse.

His defence lawyer Ricardo Preda described the allegations as a “reckless accusation” that was “irresponsible and opportunistic”.

In an address to the nation on Thursday, Peña said that he was sorry and that “it was never my intention to betray the trust you placed in me”.

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Kenyan Doomsday Cult Leder Gets Life Sentence For Killing 191 People

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A Kenyan court has sentenced the leader of a doomsday cult, Paul Mackenzie, to 200 years in prison for murdering 191 people, all but one of them children.

 

Alongside 27 others, Mackenzie was found guilty of the murders for instructing members of his cult to starve their children to death so they could “meet Jesus”.

Justice Diana Mochache said Mackenzie bore the “primary criminal culpability” for ordering his followers to fast to death, in one of Kenya’s deadliest episodes of religious extremism.

“The sentence is appropriate and just, to send an unmistakable message that such atrocities warrant the maximum penalties allowed by law,” the judge added.

The self-styled pastor was arrested in 2023 after the discovery of more than 400 bodies in shallow graves in Shakahola forest near the Kenyan coast. The sprawling investigation into the cases shocked Kenya and drew international attention.

Ahead of sentencing, prosecutors in the court in Mombasa had argued for the death penalty for Mackenzie because of the gravity of the crimes. Capital punishment has not been carried out in Kenya since 1987.

The prosecutors also cited what they described as Mackenzie’s lack of remorse for the crimes. They requested life sentences for his co-accused.

Before the hearing began on Friday morning, Francis Wanje, who lost eight relatives in Shakahola forest, including two grandchildren, told the BBC’s Newsday programme that he was “hoping for… a sentence which will match his [Mackenzie’s] deeds in the forest”.

Mackenzie and the co-accused have formally pleaded for mercy and asked for leniency from the court.

Before their conviction on 19 October, they had all pleaded not guilty and repeatedly insisted that nobody was forced to die.

Mackenzie’s followers believed he was “Jesus’s mouthpiece”, Justice Diana Mochache said as she delivered her eight-hour judgement last month.

Those who opposed Mackenzie’s teachings were beaten to death.

One of his co-accused said he had told his followers that anyone who “resisted the directive to fast must be forced to go to heaven through kicks and blows”.

Burials inside the forest where the cult was based were called “weddings” and those who died “were celebrated as having wedded with Jesus” the judge said.

The judge found that the deaths arose from an organised system, including religious teachings and directives that compelled followers to follow the deadly fasting.

Post-mortem results showed the cause of deaths to be starvation for most victims, while others died from suffocation, strangulation or head injuries.

The cause of death could not be determined for some, with their bodies having decomposed, while others died soon after their rescue as they were so emaciated.

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Comedian Russell Brand Found Guilty By UK Court Of Rape And Gexual Assaults

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Comedian Russell Brand, once one of Britain’s most high-profile broadcasters and star of several Hollywood movies, faces a lengthy jail term after ​being convicted in a London court on Thursday of raping a woman and sexually assaulting three more.

Prosecutors said Brand, the former husband of US pop singer Katy Perry, was ‌obsessed with sex and used women to satisfy his own desires. One victim said he treated her “like an animal”.

Funny and charming when he wanted to be, but also ruthless, calculating and manipulative, the 51-year-old, who starred in “Get Him to the Greek” and “Arthur”, was interested only in getting what he wanted from women, prosecutors told jurors at Southwark Crown Court.

“The evidence showed Brand to be a calculated sexual predator, using his growing fame and power to create situations in which he could pursue women sexually, ​regardless of what they wanted,” senior Crown prosecutor David Roberts said outside court.

Brand now faces jail and potentially further action as police said he was still under investigation for two other alleged ​rapes, one involving a then 16-year-old girl.

BRAND DENIED THE CHARGES

Brand, known for his loquacious manner and flamboyant appearance, had denied all the charges and ever having non-consensual sex, ⁠saying the incidents, which dated back more than 20 years, had either been consensual, reinvented or re-imagined.

He acknowledged in evidence he had dedicated a lot of his life to “reckless philandering and idiocy” but said sexual consent ​was fundamental.

But, following a four-week trial, the jury found him guilty of rape and three sexual assaults committed between 2004 and 2009. He was acquitted of two other rape charges and an attempted indecent assault.

Judge Joel ​Bennathan said Brand, who was refused bail, would be sentenced on Monday and faced a lengthy prison term.

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