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Home»Technology
Technology

Don Lemon files lawsuit against Elon Musk over failed $1.5 million X deal.

August 1, 2024No Comments4 Mins Read
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Former CNN anchor Don Lemon filed a lawsuit against Tesla CEO Elon Musk on Thursday, accusing him of breach of contract after an exclusive deal with social media platform X was canceled following a tense interview between Lemon and Musk. Lemon claims that Musk refused to pay him after the deal fell apart in March, leading him to sue Musk for fraud, negligent misrepresentation, misappropriation of name and likeness, and unjust enrichment on top of breach of contract. Lemon alleges that Musk made false promises about the partnership, concealed important information, and deceptively used his name to promote the X brand. The lawsuit, filed in San Francisco state court, states that Lemon had already invested resources in preparation for the deal, including forming his own media company, purchasing production equipment, and entering into production deals with content companies. The partnership between Lemon and X was supposed to involve Lemon hosting his own shows on the platform in a deal worth $1.5 million annually, along with advertising revenue, but it all fell apart after the heated interview between Lemon and Musk.

Elon Musk had acquired Twitter for $44 billion in 2022 and rebranded the platform as X. However, he faced criticism for the platform’s lack of content moderation, leading some major advertisers to leave the platform after his takeover. Musk then invited prominent figures like Don Lemon to develop followings on the platform by signing them on exclusive deals. Lemon, along with others like former Rep. Tulsi Gabbard and sports host Jim Rome, were part of these exclusive agreements. Despite a plunge in revenue, Musk urged advertisers to return to X and claimed that 65% of advertisers on the platform had done so. Lemon, who was fired by CNN after 17 years with the network due to controversial on-air comments, is allowed to continue posting content on X even after the deal with Musk fell through. Musk’s net worth is estimated at around $234.7 billion, making him the world’s wealthiest person, according to Forbes.

Forbes reached out to Elon Musk and X for comment regarding the lawsuit filed by Don Lemon, but there has been no response yet. Lemon’s lawsuit alleges that Musk misled him about the details of the exclusive partnership, failed to disclose important information, and used Lemon’s name deceptively to promote the X brand. Lemon claims that he had already made substantial investments in preparation for the deal with X, including setting up his own media company, acquiring production equipment, and entering into agreements with content companies. The partnership between Lemon and X was expected to involve Lemon hosting his own shows on the platform in a deal worth $1.5 million annually, along with advertising revenue. However, following a tense interview between Lemon and Musk, the deal was canceled, leading Lemon to file the lawsuit against Musk for various claims, including fraud and breach of contract.

Despite facing criticism for the lack of content moderation on X and losing major advertisers after taking over Twitter, Elon Musk continues to grow his empire and expand his influence. Musk’s net worth is estimated to be approximately $234.7 billion, making him the wealthiest person in the world, according to Forbes. He has brought prominent figures like Don Lemon, Tulsi Gabbard, and Jim Rome onto the platform through exclusive deals, hoping to attract more users and advertisers. Musk’s acquisition of Twitter and its rebranding as X has been a controversial move, but he remains optimistic about the platform’s potential for growth. Lemon’s lawsuit against Musk highlights the complexities of dealing with high-profile individuals in exclusive partnerships and the potential legal disputes that can arise. As the case unfolds in court, it will be interesting to see how Musk and X respond to Lemon’s allegations and whether a resolution can be reached.

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