Last week’s controversies surrounding Elon Musk, including a claim that he sexually harassed a flight attendant in 2016 and his announcement that Tesla will build “a hardcore litigation department,” are not likely to impact the tech mogul’s Twitter deal, but indicate the potential for serious corporate governance issues should he complete the purchase, legal experts warn.
Because Musk worked out a cash deal for his $44 billion purchase of Twitter, “it’s unlikely that Twitter negotiated the right to cancel the contracts just because of his misconduct,” said Andrew Verstein, a law professor at the UCLA School of Law who specializes in business associations, contracts, and securities litigation.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]