Re: Why do the lawyers want money from Tesla
@Charlie Clark "This kind of arrangement is quite common in "no fee" class action suits"
But this case was not a class action suit, it was a shareholder derivative suit*, brought by a single shareholder Richard Tornetta, who held nine shares. It was not Tesla being sued, it was Elon Musk and others that were the defendants**. If this was a class action the plaintiff's lawyers would claiming their fees be paid by the defendants.
The lawyers want money from Tesla because, they were engaged to work on Tesla's behalf, just not engage by Tesla, from which Tesla benefited by $57 million. So while Tesla were not directly involved in the lawsuit they were neither plaintiffs or defendants, lawyers they did not engage have asked to be paid not for billable hours, but a cut of $57 million that's returned to Tesla.
I can understand being paid for the work being done, but not setting billable hours charge after the work is done. This looks like lawyers setting the rates after the case is finished.
*"A shareholder (stockholder) derivative suit is a lawsuit brought by a shareholder or group of shareholders on behalf of the corporation against the corporation’s directors, officers, or other third parties who breach their duties." https://www.law.cornell.edu/wex/shareholder_derivative_suit
** ELON MUSK, ROBYN M. DENHOLM, ANTONIO J. GRACIAS, JAMES MURDOCH, LINDA JOHNSON RICE, BRAD W. BUSS, and IRA EHRENPREIS