Elon Musk’s corporate philosophy: ‘Do as I say, not as I sue’

Hardly a day passes without billionaire Elon Musk making headlines, whether it is for his companies, his controversial tweets, or his personal drama. Yet behind the scenes, Musk is quietly engaging in a much more insidious activity — weaponizing the legal system to silence his critics and protect his interests, while preventing his customers from accessing the very same rights he regularly exercises.

It is a classic case of “Do as I say, not as I sue,” and a troubling development for justice.

Musk, the CEO of Tesla, SpaceX and owner of X, has a well-documented disdain for legal regulations and scrutiny. He has famously railed against government interference and positioned himself as a free-speech champion.

But when it comes to protecting his own interests, Musk is more than willing to leverage the very systems of power he claims to oppose — filing lawsuit after lawsuit to bully competitors, employees, and critics into submission.

One of the more egregious examples of Musk’s hypocrisy lies in his aggressive use of forced arbitration to silence employees. Through this legal trickery, Musk’s companies compel workers to resolve disputes in closed-door, secret arbitration rather than in open court. This tactic not only shields his companies from public scrutiny but also prevents workers from banding together in class action lawsuits.

Forced arbitration is particularly harmful because it denies employees the opportunity to seek justice in a fair and open forum. Disputes are resolved in private proceedings where the deck is often stacked against workers, with arbitrators frequently ruling in favor of the employer.

It’s a tool used to suppress claims of workplace harassment, discrimination, wage theft and, until recently, workplace sexual harassment and assault.

Yet, while Musk imposes forced arbitration on his employees, he has no qualms about filing lawsuits of his own — 23 in federal courts since July 2023, according to an analysis by Fortune. In these suits, he has gone after a range of targets, from competitors and startups to watchdog groups and even his former romantic partner, the pop star Grimes.

Musk’s wealth allows him to file lawsuit after lawsuit, dragging his opponents through lengthy litigation battles. Musk’s lawsuits often seem more about personal vendettas than legitimate claims.

One judge recently commented that a lawsuit Musk filed against the nonprofit watchdog group Center for Countering Digital Hate was “about punishing the defendants for their speech.” The group had published a report criticizing Musk’s content moderation policies on X, and, in response, Musk filed a lawsuit accusing them of causing his company “tens of millions of dollars” in ad revenue losses.

This is not an isolated incident. Musk has sued the Department of Justice, the National Labor Relations Board and the Federal Aviation Administration — just to name a few — largely because these branches of government challenged his business practices or criticized his companies.

To paraphrase Angela Aneiros, a law professor at Gonzaga University: Musk’s lawsuits are fueled by his immense wealth and a desire to punish his opponents. He is not dissuaded by losing and has the resources to litigate, appeal, and relitigate until he gets his way.

While Musk and his companies, such as Tesla, have repeatedly taken extreme measures to silence litigation exposing its failures, including serious allegations of racial discrimination and harassment, there have been a few instances of justice for those who have been wronged.

In 2023, a jury awarded $3.2 million to a former Tesla employee who had endured racial discrimination on the job. That same year, the Equal Employment Opportunity Commission also filed suit against Tesla, accusing the company of fostering racial harassment and retaliating against employees who spoke up. That said, it is impossible to know how many current and former employees have been denied justice through the weaponization of forced arbitration.

Musk’s legal actions, whether pursued individually or through one of his companies, expose the hypocrisy at the heart of his philosophy. While he publicly decries government regulation and trumpets free speech, he privately uses the courts to stifle criticism and protect his own interests.

It’s a classic case of “rules for thee, but not for me,” and it’s damaging to both the legal system and the broader public trust.

Elon Musk’s abuse of the legal system underscores the urgent need for reform. We must ensure that the courts are not a playground for the rich and powerful to silence their critics and financially crush their opponents. One critical step is to end forced arbitration, a practice that denies employees and consumers their day in court and leaves them vulnerable to corporate abuse.

At the same time, we must hold individuals like Musk accountable when they use the courts to intimidate and bully others. Musk’s wealth shouldn’t entitle him to a different set of rules. Our legal system is founded on the principle of equal justice under the law, and it’s time we start living up to that ideal.

Lori Andrus is the current president of the American Association for Justice and co-founding partner of Andrus Anderson LLP, located in San Francisco.