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2 Sep, 2023

Musk accused of ‘hijacking’ £5.5bn satellite deal

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In a filing with the Federal Communications Commission (FCC), SpaceX demands the Commission “expeditiously review and rescind” a decision to green light a £5.5 billion merger between American company Viasat and Britain’s Inmarsat. SpaceX, which had unsuccesfully tried to block the takeover, claims Viasat is causing interference with its satellites and breaching its licensing conditions in a long-running row between the two companies. It says the regulator has “improperly” failed to consider its claims the first time and that the acquisition was “contrary to the public interest” because of Viasat’s “blatant disregard” for regulations. Viasat says the FCC had already found it “qualified to obtain licences” and that its rival’s latest assault was an attempt to “hijack” the takeover. It also accuses Musk of creating the risk of orbital collisions by launching thousands of small satellites.

These are old arguments that have been tried and failed before – the FCC expressly rejected them in clearing the acquisition. And they will certainly fail again. Our focus is on integrating Inmarsat’s assets and capabilities into the Viasat family to offer the innovative new services our customers want.

24 Aug, 2023

DOJ sues SpaceX for hiring discrimination

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The U.S. Department of Justice sues SpaceX for discriminatory hiring practices, accusing the company of discouraging asylum seekers from applying to open positions and refusing to hire those who did. The complaint says SpaceX’s “routine, widespread, and longstanding” hiring practices “harmed asylees and refugees,” alleging that its job postings wrongly stated that only U.S. citizens and lawful permanent residents could apply. (Exactly which positions those were is unclear, but U.S. law protects asylees and refugees from hiring discrimination in general, regardless of their citizenship status.) After the investigation began, Musk tweeted:

US law requires at least a green card to be hired at SpaceX, as rockets are considered advanced weapons technology.

The DOJ says Musk was incorrect, however, and the tweet is being used as evidence in the suit.

29 Jul, 2023

San Francisco investigates non-permitted X roof sign

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The city of San Francisco Departement of Building Inspection opens an investigation into X headquarters, after it receives a complain about a giant flashing X that has been installed on the roof of the building without a permit. This comes after issues with the removal of the Twitter sign on the front of the building. The complaint noted that a city inspector was denied access to the building’s roof, where the X had been installed, with the company saying that the structure was a “temporary lighted sign for an event.” City spokesperson:

A building permit is required to make sure the sign is structurally sound and installed safely. Planning review and approval is also necessary for the installation of this sign. The city is opening a complaint and initiating an investigation.

5 Jul, 2023

Musk sues lawyers who represented Twitter against him

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Arguing that the bill is too high, Musk sues the lawyers who represented Twitter (now “X Corp”) in its suit against him for trying to abandon his $44 billion takeover offer in 2022. (Filed in the Superior Court of California, the case is X Corp. v. Wachtell, Lipton, Rosen & Katz [CGC-23-607461].) Hoping to get back part of the $90 million Twitter paid Wachtell, Lipton, Rosen & Katz (WLRK), X Corp alleges that the law firm tried to “fundamentally alter its fee arrangement” toward the end of its representation of Twitter in order to get an “improper bonus payment in violation of its fiduciary and ethical obligations to its client.” The complaint says that the board had been surprised about the fees and alleges that the firm was “at the center of a spending spree” by Twitter’s departing executives. It says those executives:

ran up the tab at Twitter by, among other things, facilitating the improper payment of substantial gifts to preferred law firms like Wachtell on top of the firms’ full hourly billings by designating tens of millions of dollars in handouts to the firms as ‘success’ or ‘project’ fees.

15 Jun, 2023

Music publishers sue Twitter for $250m, citing Musk’s lax copyright stance

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The National Music Publishers’ Association sues Twitter, on behalf of firms including Sony Music Publishing, BMG Rights Management and Universal Music Publishing Group, in a US federal court in Tennessee, for more than $250m over bulk copyright infringement, citing Elon Musk’s tweets to argue that the company has deliberately stopped enforcing the rules. The suit says Twitter has not paid for a blanket licence allowing its users to upload copyrighted material, unlike TikTok, Facebook, Instagram, YouTube and Snapchat. in 2023, The New York Times reported that talks had stalled over the $100m price tag and fallen apart since Musk bought the site. The suit names 17000 songs as having been infringed:

Twitter’s policies demonstrate that Twitter views itself, not the law, as the arbiter of what content is permitted on the Twitter platform. Despite claiming to take down tweets in response to an infringement notice within hours or minutes, Twitter routinely waits much longer before acting, if it acts at all. There are thousands of instances where Twitter waited 30 days or more to remove or disable access to the content identified.

According to the suit, Musk said copyright “goes absurdly far beyond protecting the original creator” and “overzealous” application of copyright laws “is a plague on humanity”. The plaintiffs:

This statement and others like it exert pressure on Twitter employees, including those in its trust and safety team, on issues relating to copyright and infringement

2 Jun, 2023

Senators ask Musk and Yaccarino about Twitter FTC violations

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Four US senators send a letter to Musk and Yaccarino asking them whether the layoffs and resignations at Twitter have hindered its ability to comply with the company’s FTC obligations. The senators are examining Twitter’s privacy practices under Musk to determine whether consumer protection laws are being flouted. The letter – signed by Elizabeth Warren (D), Ron Wyden (D), Ed Markey (D), and Mazie Hirono (D) – cites Ella Irwin’s departure as the latest source of concern about Twitter’s compliance track record. It asks whether Twitter conducted a privacy and security assessment of Twitter Blue before rolling it out (according to its 2022 consent agreement, Twitter must perform such assessments “prior to implementing any new or modified product”) as well as whether the platform has maintained a comprehensive cybersecurity program to protect user data since Musk’s takeover. It also asks whether Twitter has met various reporting requirements, including obligations to report any significant data breaches to the authorities.

[P]ersonnel changes, firsthand accounts from employees, and hasty launch of new products raise questions about whether Twitter is able to comply with its obligations under the FTC consent decree.

Mr. Musk’s behavior reveals an apparent indifference towards Twitter’s longstanding legal obligations, which did not disappear when Mr. Musk took over the company.

Regardless of his personal wealth, Mr. Musk is not exempt from the law, and neither is the company he purchased. Twitter must meet the requirements it agreed to under the 2011 and 2022 FTC agreements.

The lawmakers want Twitter to respond by June 18.

NHTSA investigates faulty Model Y steering wheels, recalls 137 vehicles

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The National Highway Traffic Safety Administration (NHTSA) investigates Tesla, after two 2023 Model Y owners filed complaints saying that their steering wheels came off while they were driving. Both cars had low mileage, and the NHTSA says they were delivered to the owners without the retaining bolt that attaches the steering wheel to the steering column. Tesla is now voluntarily recalling 137 2022-2023 Model Y vehicles, because the fastening part of the steering wheel may not be as tight as it needs to be. The loose fasteners may separate the steering wheel from the steering column and cause the vehicle to lose steering control. Tesla will provide a free inspection and reinforcement for the recalled vehicles and the its service center will provide services to users as needed. The NHTSA has not yet ordered a recall for the Model Y vehicles, but the administration says the investigation could include about 120,000 vehicles.

1 Jun, 2023

Investors accuse Tesla of ‘carnival barking, market manipulation, insider trading’

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Investors accuse Musk of insider trading in a class action lawsuit against Tesla, saying the company’s manipulation of Dogecoin cost them billions of dollars. They argue in a Manhattan federal court that Musk used paid online influencers, deliberately undertook ‘publicity stunts’ like his 2021 appearance on NBC’s “Saturday Night Live,” and more, to trade profitably at their expense through several Dogecoin wallets that he or Tesla controls. They say this included the time Musk sold about $124 million of Dogecoin after he replaced Twitter’s blue bird logo with Dogecoin’s Shiba Inu dog logo, leading to a 30% jump in Dogecoin’s price. The accusations are part of a proposed third amended complaint in the lawsuit which began in June 2022. (Tesla sought a dismissal of the second amended complaint, calling it a “fanciful work of fiction,” and said another amendment was unjustified, but US District Judge Alvin Hellerstein said he would “likely” allow the third amended complaint, as the defendants would not likely be prejudiced.) A “deliberate course of carnival barking, market manipulation and insider trading” enabled Musk to defraud investors, promote himself and his companies, the filing said.

22 May, 2023

Musk Twitter buyout suit dismissed

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U.S. District Judge Charles Breyer in San Francisco dismisses a class-action lawsuit against Musk which accused him of cheating Twitter shareholders in the course of buying the company. (Heresniak v Musk et al, U.S. District Court, Northern District of California, No. 22-03074)

According to the judge, the plaintiff lacked standing to sue because he challenged “wrongs associated with” Musk’s buyout, not the fairness of the buyout itself. Further, the judge says the plaintiff failed to show harm from Musk’s belated disclosure of a 9.2% Twitter stake (which the suit said let him buy more shares at lower prices before the buyout was announced) or from the late closing of the deal. The judge also finds no proof that Musk helped Dorsey and Silver Lake private equity firm managing partner Egon Durban breach their fiduciary duties by favoring their own and Musk’s interests – letting Dorsey roll his Twitter shares into an equity stake in the new company merely reduced the amount Musk paid at closing, it did not “improperly divert” money from other shareholders.

17 May, 2023

Judge: Musk can be subpoenaed through Tesla

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A federal judge rules that the U.S. Virgin Islands can serve Musk a subpoena through Tesla, as part of the government’s lawsuit against JPMorgan Chase over its ties to Jeffrey Epstein. The ruling comes after lawyers for the Virgin Islands government said that it had not been able to serve Musk personally with the subpoena, as is the norm. Nor did a Musk lawyer reply to a request to accept the subpoena for his client. The judge authorizes the U.S. Virgin Islands to:

arrange alternative service of its Subpoena to Produce Documents by serving Elon Musk via service upon Tesla Inc.’s registered agent.

15 May, 2023

Musk’s SEC ‘muzzle’ appeal rejected

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The 2nd U.S. Circuit Court of Appeals in Manhattan rejects Musk’s bid to modify or end his 2018 securities fraud settlement with the U.S. Securities and Exchange Commission that requires a Tesla lawyer to approve some of his tweets in advance. (SEC v Musk, 2nd U.S. Circuit Court of Appeals, No. 22-1291.). Musk argued that the SEC exploited his consent decree to conduct bad-faith, harassing investigations that violated his First Amendment free speech rights under the U.S. Constitution. His decree resolved an SEC lawsuit accusing him of defrauding investors with an Aug. 7, 2018, tweet that he had “funding secured” to take his electric car company private. (A San Francisco jury already found Musk not liable for investor losses over the tweet.)

In the appeal, Musk’s lawyers called the pre-approval mandate a “government-imposed muzzle” that amounted to an illegal prior restraint on his speech, but the court says the SEC had opened just two subsequent inquiries into Musk’s tweets, which “plausibly violated” the decree’s terms. The three-judge panel says that the SEC’s inquiries were “limited” and “appropriate,” and “have not made compliance with the consent decree ‘substantially more onerous'” for Musk, who chose to allow screening of his tweets and therefore has no right to revisit the matter “because he has now changed his mind.” Musk lawyer:

We will seek further review and continue to bring attention to the important issue of the government constraint on speech.

1 May, 2023

Conservationists sue FAA over SpaceX launches

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Conservation groups sue the Federal Aviation Administration for approving expanded rocket launch operations by SpaceX without an environmental impact study (EIS), an extensive study that includes public review and can take years or decades to complete. The FAA approved the launches based on a far less thorough assessment and a finding that SpaceX activities at Boca Chica pose “no significant impact” on the environment.

The federal court lawsuit is filed in the District of Columbia by the Center for Biological Diversity, the American Bird Conservancy, Surfrider Foundation, Save RGV (Rio Grand Valley), and the Carrizo/Comecrudo Nation. It says that explosion was only the latest in a series of at least nine that have occurred at Boca Chica in recent years and that the mishaps are disrupting a haven for protected wildlife and vital habitat for migratory birds. The plaintiffs are asking the court to vacate the finding of no significant impact and require a full EIS before any more launches occur.

This case concerns whether the nation’s commitment to preserving our critical wildlife habitat and treasured coastal landscapes must be sacrificed as we reach out to explore the cosmos.

28 Apr, 2023

Virgin Islands subpoenas Musk for Epstein documents

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The US Virgin Islands subpoenas Musk to obtain documents in its litigation against JPMorgan Chase bank regarding the activity of Jeffrey Epstein when he was a customer. (The Virgin Islands government accuses the bank of “knowingly benefiting” from Epstein’s sex trafficking.) The filing states that Epstein “may have referred or attempted to refer” Musk to JPMorgan as a client, adding:

The Government contacted Mr. Musk’s counsel via email to ask if he would be authorized to accept service on Mr. Musk’s behalf in this matter, but did not receive a response confirming or denying his authority.

The subpoena seeks all communications between Musk and JPMorgan regarding Epstein, communications between Musk and Epstein himself, and all documents regarding fees that Musk paid to Epstein or to JPMorgan regarding Musk’s accounts or relationship with JPMorgan. It also asks Musk for all documents relevant to Epstein’s involvement in human trafficking and his procurement of girls or women for commercial sex.

27 Apr, 2023

Tesla lawyers: Musk’s statements could be deepfakes

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Tesla’s lawyers argue in court filings that some of Musk’s statements about the safety of their autopilot features cannot be trusted, because they could be deepfakes. This includes Musk, saying in a speech in 2016:

A Model S and Model X, at this point, can drive autonomously with greater safety than a person right now.

The lawyers say they don’t know whether Musk really made the statements or not:

At first glance it might seem unusual that Tesla could not admit or deny the authenticity of video and audio recordings purportedly contain statements by Mr. Musk…The reality is he, like many public figures, is the subject of many ‘deepfake’ videos and audio recordings that purport to show him saying and doing things he never actually said or did.

Judge Pennypacker says these arguments are “deeply troubling” and tentatively orders Musk to be interviewed under oath for three hours about whether he made the statements:

Their position is that because Mr. Musk is famous and might be more of a target for deepfakes, his public statements are immune. In other words, Mr. Musk, and others in his position, can simply say whatever they like in the public domain, then hide behind the potential for their recorded statements being a deep fake to avoid taking ownership of what they did actually say and do.

The filings are part of a lawsuit brought against Tesla in 2019, alleging that the autopilot feature was defective, resulting in the death of the car’s owner.

21 Apr, 2023

Tesla wins Autopilot crash case

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After a three-week trial in the Los Angeles Superior Court, a California jury rules in Tesla’s favor in a lawsuit over a crash involving the company’s partially automated driving software. The jury finds that the company’s Autopilot feature did not fail when plaintiff Justine Hsu’s Model S swerved into a curb while the feature was turned on. The jury also found that the vehicle’s airbag performed safely and Tesla did not intentionally fail to disclose facts. Hsu, who had sought more than $3 million in damages, and was awarded none, broke down in tears outside the courtroom after the jury delivered its verdict. One of her attorneys expressed disappointment with the result. Tesla’s attorney declined to comment.

20 Feb, 2023

Musk’s cost-cutting hurts Goldman Sachs

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Musk’s “cost-cutting exercise” contributes to a rapid growth in delinquencies of commercial real estate loans for Goldman Sachs. After Musk’s attempt to avoid taking over Twitter, he began seeking ways to cut costs, which included not paying rent. Now, Twitter’s landlord, Columbia Property, is suing and defaulted on its loan from Goldman Sachs as a result. (Goldman Sachs was part of a group of banks that provided $1.7 billion in loans to Columbia Property. The loan was secured against seven office buildings in San Francisco and New York, two of which accommodate large Twitter offices.)

4 Feb, 2023

Musk found not guilty of Tesla tweet fraud

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In less than two hours, nine jurors unanimously clear Musk of wrongdoing in a Tesla shareholder class action suit, taken over a tweet in which he said he had “funding secured” to take the electric carmaker private in August 2018. The proposed $72bn (£60bn) buyout never materialised. Sharholders claimed Musk had lied when he tweeted later in the day that “investor support is confirmed”. According to an economist hired by the shareholders, investor losses were calculated as high as $12bn. During the three-week trial, Musk, who took the stand for nearly nine hours, argued he thought he had a verbal commitment from Saudi Arabia’s sovereign wealth fund for the deal.

Musk tweets his thansk to the jurors:

27 Jan, 2023

SEC probes Musk Tesla self-driving claims

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US regulators are investigating Elon Musk’s role as part of an ongoing Securities and Exchange Commission probe of the company’s statements about its Autopilot driver-assistance system. SEC officials are weighing whether Musk may have inappropriately made forward-looking statements, although which statements have not been revealed.

An investigation by the agency’s enforcement unit doesn’t always lead to consequences, but can result in lawsuits, fines or other civil penalties for companies and executives.

24 Jan, 2023

Crown Estate sues Twitter for London HQ back rent

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Britain’s Crown Estate, an independent commercial business that manages the property portfolio belonging to the UK monarchy, issues court proceedings to Musk’s Twitter for rental arrears, in relation to an office space close to London’s Piccadilly Circus. In December, Musk stopped paying rent on all of Twitter’s office space around the world, including its headquarters, in a cost-cutting effort.

23 Jan, 2023

Musk: I had enough funds to take Tesla private

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On his second day of testimony in a court case where he is accused of artificially boosting Tesla’s stock price with a tweet, Musk says that he had sufficient financial backing to take Tesla private. Musk says he believed it was “a done deal” that the Saudi Arabia’s Public Investment Fund would support a possible attempt to take Tesla private at $420 a share, a 20 per cent premium at the time, though he acknowledged there was no contract and that many details had not been worked out.

Musk said the PIF had “many multiples” of what was required to take Tesla private, especially because it was not expected to purchase the entire company, and added that his own shares in SpaceX, his rocket company, would make up for any shortfall.

It’s important for the jury to know that

Musk, said it was “difficult to say” if Tesla shares would rise or fall based on his tweet, because markets can act in “counter-intuitive” ways, but admitted it was more likely it would rise.

I expected that there (would) probably be some increase in the stock price — seems likely. If you say that you’re considering taking a company private or acquiring a company . . . there is going to be some premium . . . In this case, I’m clear about what the premium would be.

Mussk disagreed with the shareholders’ lawyers, who suggested the $420 price was based on a reference to cannabis that his girlfriend at the time found funny, saying he was applying a 20 per cent premium to the stock, then rounding up slightly.

There is some karma around 420, although I’d question (whether it) is good or bad karma, at this point