WILMINGTON, Del. — Tesla Inc.‘s directors agreed to settle a shareholder lawsuit challenging their compensation by returning to the company the value of 3.1 million stock options, worth $735 million, according to a Monday filing in a Delaware court.
The settlement resolves a 2020 lawsuit by a retirement fund which holds Tesla stock and challenged stock options that were granted to Tesla directors starting in June 2017.
The settlement does not impact the $56-billion compensation package of Elon Musk, which is being challenged by shareholders in a separate lawsuit that went to trial last year. A ruling is expected soon in the Musk case.
Shares in Tesla rose 1.7 percent to $286.17 in afternoon trading Monday.
