Latest Musk Controversies Unlikely to Upend Twitter Deal But Raise Governance Questions, Experts Say
"Part of what makes him so noteworthy is that he is really interested in undermining the clarity that most companies think is essential," said Andrew Verstein, a law professor at the UCLA School of Law.
May 24, 2022 at 05:35 PM
4 minute read
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.
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