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Shareholders Sue Mullen Automotive Over ‘Staggering’ CEO Pay

June 24, 2022, 7:33 PM

Shareholders sued electric vehicle company Mullen Automotive Inc and its board of directors for not disclosing sufficient information about an “outsized and unfair” CEO award.

“The sheer size of the award is staggering,” the stockholders said in a suit filed Thursday in Delaware Chancery Court.

The potential award could bring CEO David Michery’s voting power to near-majority control of the EV company and hand him about $216 million, according to the proposed class action filed by shareholder plaintiff Ram Hair Khadka.

The complaint said the board essentially asked investors to sign off on Michery receiving a massive payout and substantial ...