Barely one month after the Delaware Supreme Court handed Elon Musk a payday for the ages, the court once again appeared eager to satisfy a powerful controlling shareholder while shying away from addressing the merits of the underlying dispute before them. The top court’s ruling in favor of CEO Ken Moelis and his investment bank restored provisions of a stockholder agreement that, among other powers, granted veto powers to Moelis that plaintiffs alleged usurped the board of directors.
The Delaware Court of Chancery invalidated the relevant stockholder agreement provisions in a controversial opinion in 2024, which inspired the enactment of ...