In granting the fee petition in part, Chancellor McCormick noted that the methodology used by the firms was 'sound.' However, she observed that a $5.6 billion fee demand was excessive enough to be considered a 'windfall,' indicating that no matter the justification, such a number must be evaluated with restraint.
The plaintiffs’ attorneys from Bernstein Litowitz Berger & Grossman expressed satisfaction with the ruling, highlighting their hopes that this would bring closure for Tesla shareholders, while also indicating readiness to defend against any appeals by the defendants.
Chancellor McCormick acknowledged the significant amount of work done by the plaintiff's attorneys, who logged nearly 19,500 hours and undertook extensive investigations, including conducting 17 depositions, reflecting the complexity and depth of their legal challenge.
Despite the substantial reduction from the $5.6 billion originally sought, the awarded amount of $345 million acknowledged the plaintiffs' attorneys' hard work while also signaling a measured approach to what constitutes reasonable legal fees in high-stakes corporate governance cases.
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