Elon Musk’s Twitter Inc. was sued by another vendor claiming the billionaire new owner is refusing to pay for services the social media platform engaged while fighting to force consummation of the $44 billion acquisition.
(Bloomberg) — Elon Musk’s Twitter Inc. was sued by another vendor claiming the billionaire new owner is refusing to pay for services the social media platform engaged while fighting to force consummation of the $44 billion acquisition.
Analysis Group Inc., of Boston, said it’s trying to collect $2.2 million in unpaid bills for work it performed last summer and fall to support company lawyers wrangling to enforce Musk’s buyout offer in Delaware Chancery Court.
The consultants logged thousands of hours arranging expert witnesses to testify in support of Twitter’s legal arguments, analyzing documents and providing economic consulting to the attorneys, according to a complaint filed Thursday in Boston federal court.
A similar suit filed last month by another Boston-based legal consultant also alleges Twitter refused to pay about $2 million for services tied to the Delaware legal fight.
Since Musk’s purchase, Twitter has failed to pay millions of dollars in rent for its San Francisco headquarters and London offices, has been sued by multiple contractors over unpaid services and has auctioned off everything from bird statues to espresso machines to raise money. Musk has also openly floated the idea of bankruptcy, cited a “massive drop” in revenue as some advertisers fled from the platform, and slashed staff since closing his leveraged buyout.
Read More: Twitter Said to Make First Interest Payment on Musk Buyout Debt
Analysis Group said Twitter promptly paid the monthly bills the consultants submitted for work done from the time they were hired in July through the end of September. Musk closed the deal on Oct. 28 after repeatedly trying to walk away, leading the parties to drop the Delaware litigation.
When Analysis Group submitted its final bill on Nov. 4 — for $2,186,876.47 – Twitter went silent, according to the complaint. The consultant’s lawyer contacted Twitter on Nov. 22 and several times since to complain about the past-due bill, which began accruing interest on Dec. 19. Twitter still hasn’t responded, according to the complaint.
“Twitter is engaged in a pattern of failing to honor its contractual obligation to pay its service providers,” the consultants’ lawyer said in the complaint.
Twitter didn’t immediately respond to a request for comment.
The case is Analysis Group Inc. v. Twitter Inc., 1:23-cv-10312, US District Court, District of Massachusetts (Boston).
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