• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
LeadershipElon Musk

Elon Musk loves a good lawsuit

Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
November 20, 2023, 5:00 AM ET
Legal experts say that Elon Musk has come out a winner in his legal gambits—for now, at least.
Legal experts say that Elon Musk has come out a winner in his legal gambits—for now, at least. Natan Dvir—Bloomberg via Getty Images
Add Fortune on Google for similar content.

In a one-week period this fall, Elon Musk was hit with three separate lawsuits. The Securities and Exchange Commission sued to compel him to testify about his acquisition of Twitter shares before he purchased the company. The lawsuit came a day after a Jewish man filed a defamation lawsuit alleging Musk had labeled him a neo-Nazi. And the day before that, the singer Grimes had sued the billionaire for the right to see their three children.

Getting hit by three unrelated lawsuits in one week is highly unusual for a CEO—unless that CEO is Musk. In his case, the trio of lawsuits are just a few of the dozens of legal claims that have piled up against Musk and his companies in recent years, and are a reflection of both the man and how he does business. (Musk did not respond to a request for comment sent via Tesla.)

While most people, including CEOs, regard litigation as stressful and expensive and do their best to avoid it, Musk treats lawsuits as an extension of his outsize personality. Ashlee Vance, a journalist who has written a popular biography of the Tesla CEO, says this has always been the case. “Elon has long had a pronounced litigious streak. He tends to feel very strongly about his version of the truth and goes to any and all lengths to stand his version of the truth up in court,” Vance noted.

Legal experts say that for now, Musk has come out a winner in his legal gambits, but in a handful of cases he faces an “existential” threat that could make a courtroom the potential site of his undoing.

Musk’s legal exposure

Musk’s 2022 takeover of Twitter, which he has rebranded as X, led to trouble with the SEC but also lawsuits from workers who claim he failed to pay their severance. Meanwhile, other employees filed a spate of suits alleging illegal dismissals on the basis of age, gender, and disability. Workers at Musk’s other companies, Tesla and SpaceX, had previously filed similar lawsuits.

While employment-related lawsuits are not uncommon at big companies, the nature of the claims at Twitter and the other firms suggests they arose not from Musk stumbling over a legal trip wire—but from his explicit contempt for regulations related to labor and discrimination laws that he has displayed on social media.

Musk has expressed a similar contempt for regulators themselves. When the SEC sued him in 2016 for allegedly misleading investors with a Tesla-related tweet, he settled the case two years later under pressure from his lawyers, but then promptly took to Twitter to mock the agency as the “Shortseller Enrichment Commission.” Since then, Musk has returned to court multiple times in a bid to undo the settlement’s requirement for him to run any Tesla-related tweets by a lawyer—known colloquially as his “Twitter sitter”—before he publishes them.

All of this is just the tip of the iceberg when it comes to Musk’s legal predicaments. He is also facing consumer class actions over insider trading and his pay package, a criminal investigation over Tesla fatalities, and an investigation by the National Labor Relations Board—plus numerous other lawsuits and regulatory probes. Meanwhile, Musk has filed lawsuits himself, including one against a nonprofit group that opposes hate speech, alleging the organization hurt the site formerly known as Twitter by driving away advertisers. He also threatened to sue a high-profile Jewish group, the Anti-Defamation League, for billions of dollars on similar grounds. Legal observers have described Musk’s claims against the groups as far-fetched.

The torrent of litigation, much of it unnecessary, is frightfully expensive—senior lawyers in some of these cases reportedly bill as much as $2,000 an hour—and often highlights the worst aspects of his character. So why does Musk engage in this behavior? 

Musk’s motivations

As the richest man in the world, Musk is far wealthier than most CEOs and, in many aspects of life, can operate entirely within his own set of rules. That includes his legal strategy.

“He’s very wealthy, and so he can do this,” said Ann Lipton, a corporate and securities law professor at Tulane University. “It works because individual actors in the legal system don’t have the resources, time, and motives as Musk.”

Unlike other CEOs, Musk also enjoys a large cult following among his customers and the general public—most of whom are indifferent to his crass or insensitive behavior, or even relish the sight of their billionaire hero thumbing his nose at critics and the law.

“His audience for this isn’t bothered by him being in litigation. There’s no reputational cost for him, unlike there might be for a company like Walgreens,” said Verity Winship, a business law professor at the Illinois College of Law.

Senior lawyers in some of these cases reportedly bill up to $2,000 an hour.

Winship noted that Musk’s eagerness to pick legal fights is unusual for a CEO, but that there are other examples—typically involving those who operated their companies since the very early days. She cites the since-ousted chief executives of Uber and WeWork.

But even as much of Musk’s behavior may be driven by impulse, observers say it also has a strategic purpose. Lipton, the Tulane professor, says his reputation for being litigious serves as a deterrent to critics who might challenge him. She says that over his career, Musk has regularly “stiffed contractors” who, along with other adversaries, have often simply walked away rather than tangle with a billionaire—an assessment shared by his biographer. “He certainly does seem to use lawsuits as a tool to keep his detractors at bay. It’s effective. For as long as I’ve been reporting on Musk, people have been cautious to speak out of fear of litigation,” said Vance.

There is one further reason likely driving Musk’s penchant for litigation: So far, he has been winning.

Musk is victorious—for now

In two of Musk’s most high-profile legal battles—one against angry Tesla shareholders, and another a defamation case against a cave diver—he has gone to court and come out on top. Lipton, however, maintains that two ongoing cases do pose an existential threat to the billionaire and his companies. One of these is a claim in Delaware where investors say his $56 billion pay package at Tesla is unreasonable, in part because Musk has at times required employees at the carmaker to work on projects at his other companies. If the claim succeeds, Musk could be compelled to hand back some of his fortune and potentially to reconsider his cavalier view of legal threats. 

Lipton says the other potentially existential case confronting Musk comes in the form of the Justice Department’s investigation into Tesla’s autopilot and “full self-driving” features that have allegedly caused numerous fatalities. The company disclosed in late October that the agency has expanded the scope of its probe with additional subpoenas, and that the investigation could result in material losses. This means criminal charges against both Tesla and its CEO are a real possibility—a development that could hobble the carmaker and result in a massive loss to Musk’s personal fortune. 

This article is part of Inside Elon's Universe, a special digital edition of Fortune.

About the Author
Jeff John Roberts
By Jeff John RobertsEditor, Finance and Crypto
LinkedIn iconTwitter icon

Jeff John Roberts is the Finance and Crypto editor at Fortune, overseeing coverage of the blockchain and how technology is changing finance.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
InvestingDonald Trump
Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
By Catherina GioinoJuly 1, 2026
8 hours ago
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
NewslettersCIO Intelligence
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
By John KellJuly 1, 2026
14 hours ago
U.S. Polo Assn. CEO J. Michael Prince
SuccessThe Promotion Playbook
U.S. Polo Assn. CEO was told he wasn’t right for a promotion—so he ‘outworked’ anyone else who wanted the job for 6 months straight
By Orianna Rosa RoyleJuly 1, 2026
15 hours ago
Nikesh Arora, chief executive officer at Palo Alto Networks
SuccessJobs
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
By Emma BurleighJuly 1, 2026
16 hours ago
DHL plane being refuelled at airport by man in high-vis jacket
EuropeAviation
The Iran conflict saw jet fuel prices soar—when you use 1.88 million tonnes a year, how you respond really matters (just ask DHL)
By Sam ForsdickJuly 1, 2026
18 hours ago
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
CommentaryCareers
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
By Jeremy FainJuly 1, 2026
20 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
24 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
22 hours ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
18 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.