A SpaceX investment consortium affiliated with Elon Musk ally Iqbaljit Kahlon prevailed on appeal Friday against a Hong Kong-based subsidiary of China’s Leo Group Co. that was ousted from the enterprise.
Delaware’s top court ruled for Kahlon and his firm, Tomales Bay Capital Anduril III, which kicked Leo Investments Hong Kong Ltd. out of the investment group to preserve a broader relationship with Musk and his business empire. The state’s justices overturned the $15.8 million in legal fees Leo won at trial.
The unanimous five-member panel largely agreed with a Delaware Chancery Court judge who found that Kahlon misled Leo about his conversations with SpaceX chief financial officer Bret Johnsen. But “this single finding in favor of Leo Group does not warrant a fee award of nearly $16 million to compensate Leo Group for litigating a case that it lost on almost every issue,”…
