Civil Litigation
Apr. 2, 2026
Musk can't seek punitive damages in OpenAI fraud case, judge rules
A federal judge ruled Elon Musk cannot seek punitive damages in his fraud lawsuit against OpenAI, finding his $134 billion restitution claim is equitable, not legal, limiting available remedies at trial.
$134 billion in restitution will have to be enough.
U.S. District Judge Yvonne Gonzalez Rogers ruled Tuesday that Elon Musk cannot seek punitive damages in his fraud lawsuit against Sam Altman and OpenAI set for trial in late April.
Musk alleges OpenAI defrauded him by soliciting donations as a nonprofit before shifting to a for-profit model. He seeks $134 billion in restitution -- the amount his damages expert, C. Paul Wazzan, says OpenAI and co-defendant Microsoft earne...
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