Elon Musk could be on the hook for $35 million in damages, after Don Lemon sued the owner of social media platform X over fraud and breach of contract.
The entrepreneur had lured the former CNN newsman to X/Twitter with the promise of a much bigger audience only to cancel the exclusive partnership in March at the last minute following a tense interview, during which Musk palpably bristled at Lemon’s questions.
Now Lemon believes he is entitled to punitive damages, arguing that Musk’s actions rose above and beyond simple negligence and misconduct to meet the legal bar of oppression, malice, and fraud set forth under California’s Civil Code section 3294; at the time, the state was still home to X’s corporate headquarters.
His lawsuit claims Musk’s company had first used the 2005 Edward R. Murrow journalism award recipient to launder its sullied reputation among corporate ad buyers before discarding him after Lemon served its purpose, never once paying him a dime.
“Defendants sought to affiliate with reputable figures whose name, likeness, identity, and reputation they could use to piggyback off of to retain advertisers,” the lawsuit states.
This became critical in November, after Musk went out of his way to alienate Disney and numerous other companies that feared the platform was no longer safe for their brands. Executives including X CEO Linda Yaccarino and Brett Weitz, her head of content, talent and brand sales—both of whom were named as additional defendants—were then desperate to line up exclusive partnerships with established personalities turn the ship around, the suit claims.
“Lemon was a top prospect. A gay, Black man with an excellent reputation and a household name, he was the perfect candidate to partner with to aid their dying advertisement revenue,” the lawsuit stated.
Don Lemon show coming to 𝕏! https://t.co/Y906YecnTw
— Elon Musk (@elonmusk) January 9, 2024
In early January, he claimed he was forced to announce the new partnership at the CES consumer electronics show in Las Vegas or suffer the penalty of the one-year offer, worth a guaranteed minimum of $1.5 million, being withdrawn.
Musk maligns his former partner as ‘unwatchable’
The interview two months later that ended it all delved into issues deeply uncomfortable to Musk, including allegations of hate speech proliferation on the platform, the tycoon’s own strident political views, and his use of prescription ketamine to combat mood swings and depressions.
At one point Musk replied icily, “Don, the only reason I’m doing this interview is because you’re on the X platform.” He later recommended the former CNN journalist choose his next questions carefully.
Immediately following, Lemon was informed by X that their deal was off and his services were no longer required. Weitz told him he would receive no compensation for the ensuing expenses since no written contract had ever been signed.
Elon Musk canceled #TheDonLemonShow👀
— Don Lemon (@donlemon) March 13, 2024
Watch on YouTube and listen everywhere on Monday March 18. pic.twitter.com/AAhnvcY0ny
Musk then went on to snap that Lemon was a “stupid asshole” whose idea for a center-left cable news program in the style of CNN was bound to flop on an alternative media platform like X.
“He is beyond entitled and his show is unwatchable,” added Musk, who had promoted it only weeks earlier.
The loss of the deal and the subsequent attacks diminished his standing in the media community, Lemon claims.
“As a proximate result of Defendants’ actions, Lemon has suffered and continues to suffer emotional distress and mental pain and anguish,” the lawsuit says.
Star power wanes
Lemon’s allegations that Musk and Yaccarino piggybacked off his reputation can, however, apply equally to the former CNN newsman.
On a chart that measured personality and intelligence, 🍋 would be in the worst quadrant – stupid asshole
— Elon Musk (@elonmusk) March 18, 2024
Once a prominent and regular face on cable television, Lemon has seen his star power wane following his termination from CNN last year. The promotional support from someone as popular and influential as Musk certainly helped put him back in the spotlight for a period.
Whereas the Musk interview helped Lemon garner 2 million views on YouTube, most of his other videos have since struggled to breach the 100,000 mark. One 23-minute-long interview that aired in early May couldn’t even interest 2,500 viewers.
And while other former news figures like Carlson and Megyn Kelly have managed to rescue their brands by proving popular on Spotify, Lemon’s podcast doesn’t rank even among the top 100 in the U.S., the only major market where he’s well-known.
The lawsuit is seeking restitution of all profits, gains, and other financial benefits that Musk, Yaccarino, and company wrongfully obtained at his expense, in addition to punitive rewards.
“You don’t have to be a genius to see the fraud, negligence, and reputational damage here,” Lemon’s lawyer Carney Shegerian told the Wall Street Journal on Thursday.
Fortune has reached out to Musk, Yaccarino, Weitz, and Lemon for further comment.