Delaware Court of Chancery Chancellor Kathaleen McCormick has reassigned three cases involving Tesla CEO Elon Musk after his legal team accused her of bias. The move comes amid allegations that McCormick and a staff member reacted positively on LinkedIn to posts critical of Musk, including one celebrating a court ruling that could cost him billions.
In a court filing, McCormick denied supporting the LinkedIn post in question, stating she did not use a heart emoji to endorse it. She also reported possible "suspicious activity" on her account to LinkedIn. Despite denying the bias claims, McCormick agreed to reassign the cases, citing "disproportionate media attention" as detrimental to justice.
Musk's legal team had formally requested McCormick's recusal, arguing that her actions showed bias. The judge dismissed the recusal motion but granted the reassignment request, emphasizing that the Court of Chancery is "far greater than any one person." The cases will now be handled by other vice chancellors.
The controversy stems from McCormick's 2022 ruling that voided Musk's $56 billion Tesla pay package, a decision later overturned by Delaware's Supreme Court in 2025. Musk has since moved Tesla and other businesses out of Delaware, incorporating them in Texas and Nevada.