A Delaware judge overseeing high-profile litigation involving Tesla CEO Elon Musk has denied a motion seeking her recusal.
She further ordered the cases reassigned, citing concerns about intense media scrutiny surrounding the proceedings.
In a letter dated Monday, Chancellor Kathaleen McCormick of the Delaware Court of Chancery rejected arguments that she was biased against Musk, calling the basis for recusal "a false premise."
The motion had pointed to an alleged endorsement of a LinkedIn post critical of Musk, which McCormick said she does not support.
"I am not biased against the defendants in these actions," McCormick wrote, noting that she dismissed a lawsuit against Musk as recently as 2025.
While denying the recusal request, McCormick granted a separate motion to reassign the cases, which include consolidated shareholder derivative litigation against Tesla and Musk, as well as related suits brought by the Police and Fire Retirement System of the City of Detroit and another shareholder action.
The decision to step aside from the cases was not based on any finding of impropriety, but rather on what McCormick described as the "disproportionate media attention" surrounding her role in the litigation.
She warned that such attention could undermine the administration of justice if allowed to persist.
"As should be obvious, disproportionate media attention surrounding a judge's handling of an action is detrimental to the administration of justice," she wrote.
McCormick said the cases will be reassigned to other members of the Court of Chancery, expressing confidence in her colleagues' ability to handle the matters.
She indicated that three vice chancellors will take over adjudication of the disputes.
The court will conduct a random reassignment process, and McCormick directed that attorneys who signed the reassignment motion, or joined it, must attend the proceeding.
The litigation stems from shareholder challenges to Musk's conduct and compensation at Tesla, disputes that have drawn significant public and media interest in recent years.
McCormick herself previously issued a landmark ruling voiding Musk's multibillion-dollar pay package, a decision that has been closely watched by corporate governance experts.
Monday's order reshuffles judicial oversight of the ongoing cases, but leaves their underlying claims intact, setting the stage for a new judge, or judges, to take over one of the most closely followed corporate legal battles in the country.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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