Kim Dotcom, founder and former CEO of the now-defunct file-sharing website Megaupload, claimed on Thursday that the revocation of Elon Musk‘s $56 billion pay package is part of an ongoing campaign by the Joe Biden-led government against the Tesla Inc TSLA CEO.
Dotcom expressed his views on X, stating, “Democrats won’t stop until Elon is kicked out of his companies, his fortune gone and his reputation destroyed. That’s what happens to tech entrepreneurs with a conscience.” He also alleged that corruption within the Biden government led to Musk losing his pay package.
What’s The Claim? Dotcom is among those who believe that Delaware judge Kathleen McCormick, responsible for revoking Musk’s pay package, is working against Musk in favor of Democratic interests. McCormick was appointed Chancellor of the Delaware Court of Chancery by Democratic party member and Governor of Delaware John Carney.
In response to Dotcom’s claims, Musk acknowledged the challenges ahead, stating, “Tough battles ahead, that is for sure.”
He also criticized the judge, referring to her as an “activist and politician first and foremost” in response to an online user’s interpretation of McCormick’s judgment.
Why It Matters: McCormick ruled on Tuesday in favor of Tesla shareholder Richard J. Tornetta, who alleged in a lawsuit that the company’s directors breached their fiduciary duties by awarding Musk a performance-based equity-compensation plan in 2018.
Tornetta claimed that shareholders were not adequately informed when voting on the package and that Musk had too much influence on those negotiating on the company’s behalf.
In 2022, McCormick also presided over the lawsuit brought by Twitter against Musk over his acquisition bid for the company. Musk proposed to acquire Twitter in April 2022 in a $44 billion deal but later accused Twitter of misrepresenting its user base. Twitter sued Musk to enforce the original agreement, and the transaction was eventually completed in October 2022, with Twitter subsequently renamed X.
Dotcom, meanwhile, currently residing in New Zealand, is facing extradition proceedings initiated by the U.S. government in connection to his Megaupload site, which was shut down in 2012.
Dotcom was subsequently charged with criminal copyright infringement and wire fraud, among other charges.
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