New Delhi: Twitter has sued a law firm representing 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 when Musk tried to void its deal to acquire the company last year.
Wachtel, Lipton, Rosen & Katz, a leading mergers and acquisitions firm, received a $90 million fee from Twitter, which the social network said was “unjust enrichment,” reports The New York Times.
Twitter now wants the fee back. The lawsuit was filed in San Francisco Superior Court by Twitter’s parent company X Corp.
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The lawsuit alleges that Wachtel “took funds from the company’s cash register while handing over the keys” to Lipton X Corp. owner Musk.
According to documents filed with the lawsuit, Twitter’s board and executives approved the $90 million payment because the law firm was successful in getting Musk to comply with an agreement to buy his company.
Twitter disputed other fees associated with Musk’s purchase of the company.
“An advisory firm, Innisfree M&A, sued Twitter in February for $1.9 million in what it said were unnecessary bills. Joel Frank, a public relations firm, sued Twitter in May, arguing that it was not paid about $830,498 for services it provided. agreement,” the report said
