San Francisco, July 8: Twitter has sued a law firm that represented the micro-blogging platform as Elon Musk tried to back out of his deal to buy the platform for $44 billion. Twitter's previous management hired the corporate law firm after Musk tried to terminate his agreement to acquire the company last year. Wachtell, Lipton, Rosen & Katz, a top mergers and acquisitions firm, received a $90 million fee from Twitter, which according to the social network was "unjust enrichment", reports The New York Times.
Twitter now wants the fee to be returned. The lawsuit has been filed in San Francisco Superior Court by X Corp, Twitter's parent company. The lawsuit said Wachtell Lipton took "funds from the company cash register while the keys were being handed over" to Musk, who owns X Corp. Twitter Quietly Removes Login Requirement To View Tweets, Users Can Now Open Links in Browser Without Account.
According to documents submitted with the lawsuit, Twitter's board and executives approved the $90 million payment because the law firm had succeeded in making Musk abide by his agreement to buy the company. Twitter had disputed other fees related to Musk's purchase of the company. Twitter Down: Twitter Users Hit by ‘Rate Limit Exceeded’ Error Globally Preventing Thousands From Posting Tweets.
"An advisory firm, Innisfree M&A, sued Twitter for $1.9 million in February over what it said were unpaid bills. Joele Frank, a public relations firm, sued Twitter in May, arguing that it wasn’t paid about $830,498 for services rendered in the deal," the report said.
(The above story first appeared on LatestLY on Jul 08, 2023 09:34 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).