Tesla Scores Court Reassignment in Musk Cases as Judge Blasts Bias Motion

• The judge also said that the motion for her recusal “rests on a false premise.”
• According to a report from Reuters, Tesla shareholder David Wagner dismissed his 2022 case against the Tesla board after McCormick posted the letter.
• Musk has attacked McCormick several times since she ruled against his 2018 pay package  stating that the company's board breached their fiduciary duties to shareholders by approving it.

Chancellor Kathaleen McCormick of the Court of Chancery said on Monday that she will reassign three cases against Tesla CEO Elon Musk and its board members following allegations that she supported a social media post which raises questions of bias.

McCormick said in a letter addressed to legal teams involved in three lawsuits that she is not biased against Musk, while noting that she dismissed a suit against the billionaire last year. She also said that the motion for her recusal “rests on a false premise.” Tesla had pushed for her recusal based on a screenshot of the judge’s support for a Linkedin post that congratulated the legal teams which led a separate federal securities fraud case against ​Musk.

“...disproportionate media attention surrounding a judge’s handling of an action is detrimental to the administration of justice.  Fortunately, the Court of Chancery is far greater than any one person,” the judge said in a letter. She also called upon the legal teams who sought the change to contact her Chambers and obtain a time for a random reassignment of the cases.

Shareholder Dismisses Case

According to a report from Reuters, Tesla shareholder David Wagner dismissed his 2022 case against the Tesla board after McCormick posted the letter. His was one of the three cases that the judge had chosen to reassign.

McCormick Vs. Musk

Musk has attacked McCormick several times since she ruled against his 2018 pay package  stating that the company's board breached their fiduciary duties to shareholders by approving it. The Delaware Supreme Court reinstated the package in December 2025.

Musk has since then moved Tesla's state of incorporation out of Delaware and into Texas. He also called on other companies to follow suit, and accused the judge of activism and absolute corruption.

How Did Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock fell from ‘bearish’ to ‘extremely bearish’ territory over the past 24 hours while message volume stayed at ‘high’ levels.

TSLA stock has gained 37% over the past 12 months. 

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