A Delaware choose on Tuesday voided the $56 billion pay package deal of Tesla CEO Elon Musk, ruling that the corporate’s board of administrators “failed that the compensation plan was truthful.”

Tesla’s share value slid about 3% in after-hours buying and selling Tuesday following information of the choice within the lawsuit filed by Richard Tornetta, a shareholder within the electrical automaker.

“The plaintiff is entitled to rescission,” Delaware Chancery Court docket Choose Kathaleen McCormick wrote in his ruling agreeing that Musk’s pay package deal was inappropriately set by Tesla’s board.

“The events are to confer on a type of last order implementing this determination and submit a joint letter figuring out all points, together with charges that should be addressed to convey this matter to a conclusion on the trial stage,’ McCormick mentioned.

That is breaking information. Please examine again for updates.