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McKool Smith principal Marc Ladd spoke with Insurance Business America regarding Tesla CEO Elon Musk’s recent tweets suggesting Tesla’s stock price is too high. The article, “Insurance lawyer on Elon Musk and Tesla's unconventional D&O decision,” discusses Tesla’s intention to forego D&O insurance, and have Elon Musk to provide coverage for any legal defense and settlement costs. Ladd said, “With a company of Tesla’s size and potential exposure, I don’t think they’re going to want to make one person individually liable for the insurance coverage of the entire company. What if a lawsuit is brought and Elon Musk wants to take it to trial, but all the other board members want to settle it and protect the company? There are just so many inherent conflicts of interest. It will be interesting to see how this will play out given Tesla’s propensity for controversy, and I think it will play out sooner rather than later.” Read the article here.


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