Chancellor Kathaleen McCormick, the top judge on Delaware's Chancery Court, has removed herself from three ongoing shareholder lawsuits involving Tesla CEO Elon Musk. The decision, announced in a Monday court filing, follows a recusal motion from Musk's legal team alleging bias due to social media activity.
McCormick stated she is reassigning the cases to other vice chancellors to preserve the integrity of the judicial process. She cited the "disproportionate media attention" surrounding her involvement as being "detrimental to the administration of justice."
Allegations of Social Media Bias
Musk's lawyers filed a motion last week seeking McCormick's recusal. They claimed she used LinkedIn's heart-in-hand "support" emoji on a post celebrating a legal loss for Musk in a separate California case. The motion also alleged that a member of her staff "liked" another LinkedIn post critical of the billionaire.
In her response, Chancellor McCormick firmly denied the allegations. "The motion for recusal rests on a false premise — that I support a LinkedIn post about Mr. Musk, which I do not in fact support," she wrote. She added that she reported the "suspicious activity" to LinkedIn and does not recall seeing the post in question.
McCormick emphasised her impartiality, noting she dismissed a suit against Musk just last year.
A History of High-Profile Rulings
The judge is no stranger to high-stakes litigation involving Musk. In 2024, she sided with Tesla shareholders in a landmark ruling that voided a $55 billion compensation package for Musk as CEO. That decision was later overturned on appeal.
She also presided over the lawsuit brought by Twitter (now X Corp.) to force Musk to complete his $44 billion acquisition of the social media platform, which he ultimately did.
The Cases Being Reassigned
The three lawsuits now being transferred to different judges involve serious allegations against Musk and Tesla's board. Two suits accuse Musk of engaging in self-dealing transactions that harmed shareholders. A third alleges the board permitted Musk to take actions that potentially violated a prior settlement with the U.S. Securities and Exchange Commission (SEC). Musk has denied all wrongdoing in these matters.
In her filing, McCormick expressed confidence in her colleagues, writing, "Fortunately, the Court of Chancery is far greater than any one person. I have complete faith in the Vice Chancellors' abilities to adjudicate these matters."