Elon Musk Requests Judge’s Recusal in Tesla Case Due to LinkedIn Activity
Elon Musk has formally requested the recusal of Delaware Chancellor Kathaleen McCormick from a shareholder lawsuit against him. The attorneys representing Musk argue that her activity on LinkedIn creates an appearance of bias.
Background on the Request
The request came through a court filing on Tuesday night. Musk’s legal team claims McCormick showed bias by reacting positively to a critical LinkedIn post about him. They argue this behavior necessitates her recusal and recommend that another judge be assigned to the case.
Details of the Lawsuit
The lawsuit in question involves allegations from Tesla shareholders. They claim Musk misled them about selling his shares before his 2022 Twitter acquisition. The filing suggests that Musk’s actions allowed him to profit unlawfully, which he has denied.
LinkedIn Reactions
According to Musk’s attorneys, McCormick supported a lawyer’s post celebrating a legal victory against him. In their motion, they noted that of the 121 reactions to this post, only one person, McCormick, selected the “Support” option, implying a significant endorsement. This reaction, depicted by a heart in an outstretched hand, requires deliberate action.
Response from Chancellor McCormick
In a letter written on the same Tuesday, McCormick denied endorsing the LinkedIn post. She stated that she did not recall seeing it and reported suspicious activity on her account, which has since been deactivated. McCormick emphasized that she does not support the views expressed in the post about Musk.
Previous Cases Involving Musk
Chancellor McCormick has previously presided over two significant cases involving Musk. In a notable 2022 case, she ruled in favor of Twitter, compelling Musk to finalize his acquisition of the social media platform. Additionally, she previously ruled against Musk regarding a $55 billion pay package, although this ruling was later overturned by Delaware’s Supreme Court.
Concerning Staff Reactions
Musk’s legal team also pointed out that a member of McCormick’s staff engaged with a LinkedIn post from another attorney criticizing him, further raising questions about impartiality in McCormick’s chamber.
The fallout from these events is significant. They have contributed to a trend of businesses relocating away from Delaware, as seen with Musk’s decision to move his companies to Texas.
