OpenAI Can’t Dodge Musk’s Fraud Claims in Restructuring Suit (2)

A judge narrowed claims in Elon Musk’s lawsuit alleging that OpenAI broke its promise to function as a public charity by making plans to transform itself into a for-profit business.

US District Judge Yvonne Gonzalez Rogers in Oakland, California, on Thursday ruled that the world’s richest person can pursue fraud claims in the complaint he filed against OpenAI last year. She also declined to dismiss an unjust enrichment claim against OpenAI and Microsoft Corp., a major investor in the startup.

But she threw out claims of false advertising and breach of fiduciary duty claims against the startup. Both ...