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Musk sues law firm fee Twitter paid before he took over

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Musk sues law firm fee Twitter paid before he took over

Elon Musk's X Corp is taking legal action against the law firm Wachtell, Lipton, Rosen & Katz (Wachtell Lipton) due to a massive "success fee" it charged Twitter just before he took over. The law firm helped the old Twitter owners close the deal with Musk as he tried to back out and subsequently left Musk’s Twitter down $90 million in professional fees.

Axar.az reports that according to Twitter, much of the $90 million professional fees were paid by the company to the law firm just hours before Musk took over the company. Now he is arguing that Wachtell Lipton exploited a corporate client being run by “lame duck fiduciaries who had lost their motivation to act in Twitter’s best interest”.

What’s even more shady about the whole arrangement is that Wachtell Lipton’s invoices to the social media firm came to millions of dollars in hours billed and the time entry descriptions were just completely blank, according to X Corp.

Date
2023.07.08 / 14:52
Author
Axar.az
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