Chancellor McCormick Steps Aside from Elon Musk Lawsuits Citing Media Attention
Chancellor Kathaleen McCormick, the presiding judge in Delaware's Chancery Court, has removed herself from three ongoing lawsuits involving Tesla CEO Elon Musk. This significant decision was formally announced in a court filing on Monday.
The move comes after a motion filed last week by Musk's legal counsel, who alleged judicial bias. They claimed that McCormick and one of her staff members had reacted positively on LinkedIn to posts critical of Mr. Musk.
In her Monday filing, McCormick denied using the 'support' reaction (represented by a heart emoji) on any LinkedIn posts concerning Mr. Musk. She asserted that the recusal motion was based on a false premise and denied any bias against the defendants.
She further noted a previous dismissal of a suit against Mr. Musk last year as evidence against bias.
Despite her denial of bias and choosing not to formally recuse herself, McCormick decided to reassign the cases to other judges within the Chancery Court. She stated that the 'disproportionate media attention' surrounding her involvement could be 'detrimental to the administration of justice.' McCormick expressed full confidence in the abilities of the other vice chancellors to adjudicate these matters.
Musk's lawyers had specifically claimed in their filing that McCormick had reportedly used the 'support' emoji on a LinkedIn post that celebrated his loss in a separate California case, and that a staff member had 'liked' another post critical of Musk. McCormick previously stated she did not recall seeing the post and reported the activity to LinkedIn. LinkedIn later indicated she had used the 'heart-in-hand' icon on a post about Musk, an action she stated she did not 'support.'
McCormick's Prior Cases Involving MuskMcCormick has overseen other significant cases involving Musk. In 2024, she sided with shareholders in a ruling that invalidated a $55 billion pay package for Musk as Tesla's CEO, though this ruling was subsequently overturned. She also presided over Twitter's lawsuit against Musk, seeking to compel his acquisition of the social media company, now known as X Corp.
The Lawsuits at HandThe three shareholder lawsuits from which McCormick is now stepping aside include:
- Two alleging Musk took actions that primarily benefited himself rather than shareholders.
- A third asserting that Tesla's board allowed actions that might have violated an SEC settlement.
Musk has denied any wrongdoing in these cases.