In the aftermath of the recent legal battle over Elon Musk's controversial pay package, lawyers representing Tesla shareholders have made a bold move. Following their successful argument that Musk's compensation plan was illegal, they are now seeking a substantial reward. Court documents filed on Friday reveal their request to the presiding judge in Delaware for compensation in the form of Tesla stock valued at a staggering $5.6 billion.

This request, if approved, would mark one of the largest awards ever granted in a case of this nature. Comparisons are being drawn to the legal fees awarded in class-action suits related to major corporate scandals, such as the Enron collapse, where lawyers received a record $688 million in 2008.

The attorneys, who have been representing Tesla shareholders throughout the case that concluded in January, justify their demand by highlighting their commitment and dedication over the past five years. They emphasize that their work was entirely contingency-based, meaning they would have received no compensation if they had not succeeded in proving the illegality of Musk's pay package. They assert that the benefits to Tesla from their legal action were immense, justifying the substantial reward they are now seeking.

The requested award, totaling $5.6 billion in Tesla stock, represents approximately 11% of the value of the stock that Musk was seeking in his contested compensation package. This compensation package was deemed illegal by Judge Kathaleen St. Jude McCormick in her ruling earlier this year.

Furthermore, the attorneys argue that their requested compensation would not affect Tesla's financial position, as it would not be a direct monetary payment but rather a transfer of company stock. They also point out that such awards are tax deductible. Additionally, they are seeking reimbursement for expenses totaling $1.1 million.

In her ruling, Judge McCormick concurred with the arguments put forth by the shareholder lawyers, affirming that Musk had personally orchestrated the controversial 2018 pay package through negotiations with directors who lacked independence.

The outcome of this legal battle could have significant implications for Tesla and Musk, as the requested award would represent a substantial portion of the company's value. Musk, who currently holds a 13% stake in Tesla, could face further financial repercussions depending on the judge's decision regarding the lawyers' compensation request.

As the legal proceedings continue, stakeholders and observers await the judge's ruling on this unprecedented request for compensation in the form of Tesla stock.