Shillong, July 8: Twitter has filed a lawsuit against a law firm that represented the social media platform when Elon Musk attempted to back out of his agreement to acquire the company for $44 billion.
The previous management of Twitter engaged the services of Wachtell, Lipton, Rosen & Katz, a renowned mergers and acquisitions firm, after Musk’s attempted termination of the acquisition deal last year.
According to The New York Times, Wachtell, Lipton, Rosen & Katz received a $90 million fee from Twitter, which the social network now considers to be “unjust enrichment.” Twitter, through its parent company X Corp, has filed the lawsuit in San Francisco Superior Court, seeking the return of the fee.
The lawsuit alleges that Wachtell Lipton took “funds from the company cash register while the keys were being handed over” to Musk, who owns X Corp.
As per IANS, documents submitted with the lawsuit reveal that Twitter’s board and executives approved the $90 million payment as the law firm had succeeded in ensuring Musk’s compliance with the acquisition agreement.
Twitter had already disputed other fees related to Musk’s purchase of the company. In February, advisory firm Innisfree M&A sued Twitter for $1.9 million over unpaid bills, while public relations firm Joele Frank sued Twitter in May, claiming non-payment of approximately $830,498 for services rendered in the deal.