Lawyers representing Tesla shareholders in a case that successfully argued that Elon Musk's massive pay package was illegal and should be voided have asked a Delaware judge to award them company stock worth $5.6 billion as legal fees. This request, if approved, would be the largest such award in history, surpassing the $688 million given to lawyers in Enron-related class actions in 2008. The attorneys argued that their contingency work over more than 5 years was justified, as they risked receiving nothing if they had lost the case. The benefit to Tesla shareholders was described as “massive” by the lawyers.

In January, Judge Kathaleen St. Jude McCormick ruled that Musk's 2018 pay package was illegal, as Musk personally dictated the terms in sham negotiations with non-independent directors. The package would have nearly doubled Musk's stake in Tesla, which currently stands at 13%. The attorneys are now seeking 11% of the Tesla stock - around 29.4 million shares - that Musk was seeking in the compensation package. They argued that taking their pay in Tesla shares would link the award directly to the benefit created and would be tax-deductible for the company.

Greg Varallo, lead counsel for the plaintiffs, stated that the lawyers collectively logged nearly 19,500 hours throughout the case, with a potential $6 billion award translating to a per-hour rate of $305,550. The attorneys, based in Delaware and New York, are also requesting an expense reimbursement of $1.1 million. Musk, who is expected to appeal the ruling, has also announced plans to move Tesla's site of incorporation to Texas. Representatives for Musk and Tesla did not immediately respond to requests for comment on the matter.