Elon Musk sued by ex-CNN anchor Don Lemon over canceled X deal

Elon Musk sued by ex-CNN anchor Don Lemon over canceled X deal
By: cnbc Posted On: August 01, 2024 View: 142

Elon Musk (L) & Don Lemon
Reuters (L) | Getty Images (R)

Former CNN anchor Don Lemon sued Elon Musk on Thursday, accusing him of making false promises to entice the journalist into a canceled deal to host a show on the billionaire's social media platform.

The lawsuit alleges that Musk — who bought Twitter for $44 billion in late 2022 and later renamed it X — used news of a partnership with Lemon to boost the media company's profile, then reneged on the deal without compensating him.

Lemon had "incurred hundreds of thousands of dollars in expenses" in preparing for the show, the lawsuit alleges.

The deal to host "The Don Lemon Show" on X was scrapped in March, shortly after the taping of its premiere episode, a one-on-one interview with Musk.

"We had a good conversation. Clearly he felt differently," Lemon said of Musk when he announced that the partnership had fallen apart.

Musk later said on X that Lemon's approach "was basically just 'CNN, but on social media,' which doesn't work, as evidenced by the fact that CNN is dying."

Thursday's lawsuit in San Francisco Superior Court alleges that Musk and his co-defendants "deliberately misrepresented what they intended to do."

If they "accurately represented" that their plan was to use Lemon to "rehabilitate Defendants reputation and draw in advertisers to the X platform," Lemon would never have agreed to it, the suit says.

Lemon accuses Musk and X of fraud, negligent misrepresentation, misappropriation of name and likeness, breach of contract, and unjust enrichment. He is seeking damages and other relief.

Lemon's attorney, Carney Shegerian, in a statement Thursday said that X's executives "used Don to prop up their advertising sales pitch, then canceled their partnership and dragged Don's name through the mud."

"You don't have to be a genius to see the fraud, negligence, and reputational damage here," Shegerian said. "Don's a hard-hitting journalist who's committed to defending his good name. We look forward to our day in court."

Lemon was fired from CNN in April 2023, following a sexist on-air remark about then-presidential candidate Nikki Haley and a Variety report about his behavior behind the scenes during his 17 years at the network. Lemon's spokesperson at the time said that report was "riddled with patently false anecdotes" and old gossip.

The 29-page lawsuit says Lemon, after leaving CNN, was a "top prospect" for Musk and X, who were looking for "reputable figures" to help in the struggle to keep advertisers on the platform.

"A gay, Black man with an excellent reputation and a household name, [Lemon] was the perfect candidate to partner with to aid their dying advertisement revenue," the lawsuit alleged.

Lemon in mid-December met with X CEO Linda Yaccarino and Brett Weitz, another X executive, at a New York City restaurant, to discuss a potential exclusive partnership. They assured Lemon that he would have "full authority over his work," and later promised "a revival of his career," the lawsuit says.

"You're set up for a lot of $$ this year," Weitz allegedly told Lemon in a Dec. 30, 2023, text.

The lawsuit does not say Lemon signed a contract, but alleges that the defendants agreed to pay him $1.5 million, plus other financial perks, for a one-year deal.

The suit alleges Lemon was "rushed" into agreeing to the partnership, in part because he was told that the offer would be withdrawn unless he attended the CES Conference in Las Vegas and publicly announce the partnership on the same day.

Within one day of Musk's March 8 interview with Lemon, the Tesla and SpaceX CEO texted the host's agent that Lemon's "contract is cancelled," the lawsuit alleges.

Weitz then allegedly told Lemon that he would not be paid "because there was no signed agreement, despite Musk previously representing to Lemon that there would be no need for a formal written agreement or to 'fill out paperwork.'"

"To this day, Defendants have not compensated Lemon pursuant to the exclusive partnership deal that Defendants induced Lemon to enter into," the lawsuit says.

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