Elon Musk and his companies are facing numerous lawsuits, encompassing a wide range of issues from fatal crashes attributed to Tesla Inc.’s Autopilot system to accusations of civil rights violations concerning employees.
On June 6, Tesla’s board and Musk were sued over his $56 billion compensation package, which was previously invalidated by a judge in January. However, on June 13, Tesla shareholders voted to reinstate the deal, now valued at $44.9 billion based on stock price.
In addition to these legal battles, Musk, known for his disputes with regulators, is also under government scrutiny across his companies, which could potentially lead to more lawsuits or criminal charges.
Bloomberg News has identified several ongoing legal disputes where Musk is either a plaintiff or a defendant, as well as numerous other lawsuits involving his companies. Here is an overview of the major legal challenges faced by the world’s third-richest individual and his enterprises:
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California state and federal courts
X Corp., previously Twitter, is facing multiple lawsuits alleging labor and workplace infractions following mass layoffs after Musk’s acquisition in 2022, including failure to pay promised severance to executives and employees.
These lawsuits collectively seek hundreds of millions of dollars in back pay.
X is also accused in several suits of not paying vendors and landlords after Musk’s takeover, resulting in millions of dollars in unpaid expenses according to the complaints.
Musk is the subject of an investor lawsuit claiming he created uncertainty about his proposed buyout to depress the stock price of the platform.
The investors are seeking damages due to stock value losses.
X has sued non-profit organizations that criticized toxic content on the platform and its lax content moderation practices.
If X can prove its claim that published articles are false and malicious attacks aimed at driving advertisers away, Musk’s company could potentially win monetary damages.
California and Florida state and federal courts
Tesla is facing multiple wrongful death claims due to fatal crashes linked to its Autopilot system.
A finding holding Tesla responsible for these deaths would jeopardize Musk’s ambition of leading the way in fully self-driving cars.
California state and federal courts
Tesla is entangled in various lawsuits related to allegations of racism on its production floor filed by workers, California’s civil rights department, and the U.S. Equal Employment Opportunity Commission.
The automaker may face damages and be required to cultivate a more inclusive work environment.
Federal appeals court in New Orleans
An appellate panel is reviewing a National Labor Relations Board finding that Musk illegally threatened workers with benefit loss if they unionized.
A ruling against Musk’s social media commentary could be a significant blow for him and a morale boost for labor activists.
A shareholder lawsuit alleges that Musk’s use of recreational drugs poses a threat to Tesla’s business, potentially influencing his erratic behavior online.
The lawsuit seeks closer monitoring of Musk’s social media posts about Tesla.
California federal courts
Tesla is facing multiple lawsuits alleging misrepresentations to consumers regarding the capacity and capabilities of its electric vehicles.
These lawsuits target features Tesla uses to differentiate itself in the market.
6 JPMorgan stock warrants
JPMorgan is suing Tesla for a $162 million payment related to stock warrant transactions dating back to 2014, with Tesla counter-suing the bank.
The case could bring up Musk’s tweet about taking Tesla private, which is central to the dispute.
7 ‘Insider’ sale of $7.5 billion in stock
A shareholder accuses Musk of insider trading when he sold over $7.5 billion in stock, seeking the return of the profits to the company.
SpaceX is accused by the NLRB of terminating employees over a critical internal letter concerning Musk.
The company may have to reinstate the workers or provide back pay.
The fired SpaceX employees also sued Musk over alleged retaliation and sexual harassment in the workplace.
Musk could be held personally liable for misconduct and face punitive damages in this lawsuit.
SpaceX is in a legal battle with the NLRB over the agency’s structure for in-house proceedings.
A win for SpaceX could impact the authority of the labor rights watchdog.
SpaceX is facing gender discrimination suits, alleging underpayment and sexual harassment of female employees.
A loss in these cases could damage the company’s reputation and deter potential female employees.
5 Wildlife area launchpad
SpaceX’s use of a launchpad near a Texas wildlife refuge has triggered a lawsuit from environmental groups regarding FAA approval.
The scrutiny may affect future licensing for SpaceX.
Musk is financially supporting Gina Carano’s lawsuit against Walt Disney Co. over controversial statements made on X.
Musk’s promise to cover legal fees for individuals fired due to statements made on the platform.
2 ‘False flag’ defamation
Musk is facing a defamation lawsuit for promoting a false conspiracy theory involving a California man.
The plaintiff is seeking damages of at least $1 million in this case.
3 Dogecoin cryptocurrency
Lawsuits allege Musk, SpaceX, and Tesla participated in a racketeering scheme to inflate Dogecoin’s price.
The previously claimed $258 billion damages are no longer specified in the amended complaint.
Government investigations
Government agencies are investigating Tesla over potentially misleading claims about self-driving capabilities.
The probes could result in regulatory actions or criminal charges against Tesla.
Investigations are ongoing regarding Tesla’s use of company funds for a glass house in Texas, potentially leading to enforcement actions or criminal charges.
3 Twitter stock purchases
The SEC is examining Musk’s Twitter stock purchases and related statements prior to the purchase of Twitter.
This probe could result in enforcement actions and fines for Musk.
The FTC is monitoring X’s compliance with a privacy settlement, with violations potentially leading to significant fines or criminal charges.
