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Lawyers seeking $6 billion fee from Elon Musk

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The legal team responsible for voiding Elon Musk’s mammoth $56 billion compensation package is now seeking an unprecedented $6 billion in legal fees.

The three law firms involved justified their request in a filing with the Court of Chancery in Delaware, citing the monumental effort and risk involved in challenging Musk’s compensation package, which was deemed excessive by a Delaware judge in January.

“We recognise that the requested fee is unprecedented in terms of absolute size,” the firms stated, adding that the fee equates to an astronomical hourly rate of $288,888.

Musk swiftly condemned the request as “criminal,” taking to his platform X, formerly known as Twitter, to express outrage: “The lawyers who did nothing but damage Tesla want $6 billion.”

Neither Tesla nor Musk’s attorney have responded to requests for comment.

Pay packet

The legal battle stems from a lawsuit filed by shareholder Richard Tornetta in 2018, which led to the nullification of Musk’s lucrative pay package.

The electric vehicle manufacturer could be on the hook for the hefty fee as it stands to benefit from the return of Musk’s compensation, which includes a staggering 266 million shares.

“This structure has the benefit of linking the award directly to the benefit created and avoids taking even one cent from the Tesla balance sheet to pay fees,” the lawyers argued, emphasising that the fee would be tax-deductible to Tesla.

Judge Kathaleen McCormick, overseeing the case, had previously described Musk’s pay as “unfathomable” in her ruling.

However, Tesla may contest the fee, given a similar fee request in a separate case concerning pay for its directors.

Legal compensation

The proposed fee, if granted, would set a new record in legal compensation, surpassing even the $688 million awarded to attorneys in a 2008 securities fraud case involving Enron Corp.

As the Delaware Supreme Court weighs an appeal regarding a $267 million fee in a case involving Dell Technologies, the issue of attorney compensation in high-stakes litigation continues to be a subject of debate.

Critics argue that as settlements and judgments increase in size, attorneys should receive a declining percentage to prevent overcompensation.

The legal team behind the Musk case contends that their requested fee represents around 11% of the judgment.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

Take note

The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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BlackRock CEO Larry Fink says AI leads to higher wages

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Larry Fink, the CEO of BlackRock Inc., has outlined his vision for the impact of the firm’s investment in artificial intelligence.

During the company’s recent earnings call, Fink emphasized the connection between productivity gains driven by AI and the potential for rising wages among BlackRock’s workforce.

He explained the firm’s ambition to leverage AI technology to enhance efficiency, enabling employees to accomplish more with fewer resources.

Fink’s remarks underscore BlackRock’s strategic approach to harnessing AI as a tool for optimising operations and driving organisational growth.

Read more – Australia’s productivity gap widens

By leveraging AI-driven productivity enhancements, the company aims to empower its employees to deliver greater value, thereby paving the way for wage increases across the organisation.

The CEO’s statement reflects a broader trend in the intersection of technology and labor dynamics, where advancements in AI and automation have the potential to reshape workforce dynamics and compensation structures.

Fink’s optimism about the transformative impact of AI investment on employee wages highlights BlackRock’s commitment to embracing technological innovation as a catalyst for sustainable business growth and employee prosperity.

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