Tesla Chief Executive Elon Musk is expected to face an unlikely enemy in court next week: a thrash metal drummer who hopes to wrest a $56 billion payout from Musk.
The judgment will pit the world’s richest person against one of the electric car maker’s smallest investors, Richard Tornetta, who held just nine shares when he filed the lawsuit in 2018.
Tornetta sued Musk and the Tesla board on behalf of the company in what is known as a shareholder-derived lawsuit. If successful, a $56 billion payment received by Musk in 2018 will be rescinded, or reversed, benefiting Tesla. Tornetta is not claiming compensation for himself.
Historically, cases brought by investors with an almost negligible economic stake in the litigation have been criticized by business groups as “nuisance suits”. These processes often quickly end in a non-monetary settlement and a payment to the attorneys representing the plaintiff.
“This case looks different,” said Jessica Erickson, a professor at the University of Richmond School of Law who specializes in shareholder litigation.
Tornetta’s case survived a motion to dismiss in 2019 and is heading to a week-long trial starting Monday in Wilmington, Delaware, which will feature in-person testimony from Musk.
The payment was widely criticized at the time and the California teacher pension fund, known as CalSTRS, was one of the investors to vote against.
Legal experts said such large shareholders are unlikely to sue because it could provoke a backlash from Musk and cut off access to management.
It’s unclear why Tornetta joined the case. He did not respond to a request for comment and his lawyers declined to comment.
Tornetta’s company creates aftermarket audio equipment for car customization enthusiasts. He posts lighthearted videos online with his company’s co-founder, about his gadgets or his mishaps, including Tornetta’s description of how he flared up his eyebrows.
Tornetta also appears in videos playing drums at legendary former New York club CBGB with his now-defunct metal band “Dawn of Correction”, which described their sound as “a quick kick to the face with a steel-toed boots”.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
