Reuters quoted HLLI co-founder Ted Frank in an article about the recent Tesla ruling that CEO Elon Musk must surrender stock options worth more than $50 billion. In the article Ted Frank said:
The market has already delivered its verdict on the merits of the Musk pay case, said Ted Frank of the Hamilton Lincoln Law Institute, who represents class action objectors. Tesla’s market capitalization fell by $33 billion in response to shareholders’ fee request, Frank said, arguing that pension and investment funds with sizeable Tesla stakes ought to be protesting plaintiffs’ motion. (Frank said he is speaking to one Tesla shareholder about lodging an objection but has not been retained.)Courts allow contingency fees to reward lawyers for taking risks. But no shareholder lawyers, Frank said, require an hourly billing rate of $290,000 as incentive.