Right here Are All The Large Authorized Hurdles Twitter’s Confronted Since Elon Musk’s Takeover



Twitter has skilled main turmoil following its $44 billion sale to Tesla and SpaceX CEO Elon Musk final October, together with layoffs, coverage modifications and maybe most notably, authorized disputes which have probably left it on the hook for a whole lot of hundreds of thousands of {dollars}.

Key Information

A former worker of Twitter, which has laid off greater than 5,000 staffers since Musk took over, accused the corporate of failing to pay at the very least $500 million in severance pay to former workers in a proposed class motion lawsuit filed Wednesday.

In June, a big group of music publishers sought as much as $250 million in damages by way of a lawsuit alleging the platform engaged in mass copyright infringement by letting customers submit audio and audio-visual clips with copyrighted music.

Twitter guardian firm, X Corp, sued the legislation agency Wachtell, Lipton, Rosen & Katz—employed by the platform’s former administration—earlier this month for a $90 million cost that Twitter argued needs to be paid again, in response to a submitting.

A December lawsuit from a personal jet firm alleged Twitter refused to pay $197,725 for a flight that transported the corporate’s former chief advertising officer Leslie Berland—a declare attorneys for Twitter countered, asserting the manager was overcharged for the spherical journey used to satisfy with Musk when he was settling into the corporate.

A proposed class motion lawsuit filed in early July additionally accused Twitter of refusing to course of at the very least 891 arbitration instances filed by former staffers.

Unpaid workplace charges have additionally reportedly turn out to be an issue for Twitter, which was sued by an Australian infrastructure firm final week, which accused it of failing to pay greater than $600,000 in infrastructure work payments for places of work in a number of nations—the sixth office-related lawsuit Twitter has confronted since Musk’s takeover.

Following the launch of Meta’s rival app, Threads, Twitter threatened to sue Meta over the “copycat” app, claiming it misused Twitter’s “commerce secrets and techniques and different mental property” and poached former Twitter staffers to take action.

Large Quantity

$15 billion. That’s how a lot Constancy valued Twitter at in Could—a 3rd of the cash forked over by Musk for his buy of the platform final 12 months.


Twitter’s authorized disputes have been one in all a number of obstacles the platform has confronted because it Musk purchased it. The platform has additionally handled a swath of its largest advertisers leaving it early within the 12 months. Twitter’s U.S. promoting income in April was $88 million, down 59% from the identical month final 12 months—a stat that surfaced a number of months after Musk claimed the location was “breaking even.” Twitter has additionally endured a sequence of outages and glitches which have briefly left customers with out the power to submit tweets, load photos and share exterior hyperlinks. Within the midst of its troubles, Meta’s rival app, Threads, launched July 5. Instagram lead Adam Mosseri mentioned in an interview with the Verge that Twitter’s “volatility” and “unpredictability” underneath Musk is what created a gap for Meta to compete with Twitter by way of the launch of Threads.

Key Background

Musk’s possession of Twitter is only one supply of authorized troubles for the billionaire. His firms Tesla and SpaceX have been topic to a revolving door of lawsuits which have led to combined outcomes. Final 12 months, Tesla was sued over allegations it failed to reply to harassment and discrimination complaints. The grievance was filed not lengthy after California’s Division of Honest Employment and Housing filed swimsuit towards Tesla, accusing it of discriminating towards Black employees. A former Tesla manufacturing unit employee obtained a $3 million payout in April following a prolonged swimsuit that alleged the corporate had a racist work atmosphere. Musk, Tesla and SpaceX have been additionally sued for $258 billion for an alleged dogecoin “Pyramid Scheme” final 12 months. Musk requested a federal choose to throw out the case in April, with attorneys saying the “court docket ought to put a cease to plaintiffs’ fantasy and dismiss the grievance.” Musk scored a authorized victory in February, although, when a jury discovered him not liable of defrauding Tesla traders by way of a sequence of tweets that steered he was taking the corporate non-public.

Forbes Valuation

We estimate Musk is the richest particular person on the planet, with a web price of $245.6 billion.

Additional Studying

Ex-Workers Suing Twitter Say It is Not Cooperating On Arbitration, Asks To Preserve Case In Courtroom (Forbes)

Twitter Threatens Lawsuit In opposition to Meta Over ‘Copycat’ Threads App (Forbes)


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