Elon Musk’s team is currently suing a law firm that represented Twitter when the billionaire was in the process of buying the giant social media platform last year. Why? He accuses them of overcharging for their services.
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Here’s a breakdown of all the latest developments so far.
Elon Musk’s Legal Team Claims the Former Law Firm Racked Up $90 Million “Last Minute” Legal Deal
Elon Musk is not playing around, especially not when it comes to money matters. His attorneys have filed suit against the law firm that represented Twitter when Musk was negotiating to buy the company, claiming that they were overcharged when the company was still transitioning to a new ownership.
Prior to Musk’s acquisition, Wachtell, Lipton, Rosen, and Katz was Twitter’s firm, and during that slight window of transition, reportedly did a cash-grab of $90 million.
“Fully aware that nobody with an economic interest in Twitter’s financial well-being was minding the store, Wachtell arranged to effectively line its pockets with funds from the company cash register while the keys were being handed over to the Musk Parties,” Musk’s lawsuit said.
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Wachtell was Twitter’s representative during the time Musk had cold feet and tried to back away from their initial deal for him to take Twitter private for $44 billion. After months of inside negotiations, the deal was later closed in November 2022, with Wachtell receiving the sum of $90 million for its services.
However, Musk’s team allege that the amount thus paid was hugely inflated and X Corp., Twitter’s holding company, is seeking repayment of “any associated excess fee payment” and attorneys’ fees associated with the cost of litigation.
Attorneys at Reid Collins and Wachtell have yet to publicly comment on the lawsuit.
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