Elon Musk sues law firm that represented Twitter amid his buyout over its 'unconscionable' $90M fee
The suit filed by X Corp., Twitter's new owner under Musk, accused Wachtell, Lipton, Rosen & Katz LLP of lining 'its pockets with funds from the company cash register while the keys were being handed over' to the Tesla CEO
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Elon Musk’s Twitter is suing heavyweight merger law firm Wachtell, Lipton, Rosen & Katz LLP over "unconscionable," "last minute" legal fees it charged last year when the group was hired by the social media platform amid the fight over the Tesla CEO's takeover.
Musk’s X Corp., which owns Twitter, is seeking to recoup "any associated excess fee payment" and attorney’s fees from the $90 million Twitter paid in 2022 to keep the billionaire from backing out of his $44 billion deal to buy the platform, according to Reuters and CNBC.
X Corp claimed Wachtell "arranged to effectively line its pockets with funds from the company cash register while the keys were being handed over" in the suit filed in California Superior Court in San Francisco on Wednesday.
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Elon Musk’s Twitter is suing heavyweight merger law firm Wachtell, Lipton, Rosen & Katz LLP over the $90 million legal fee it charged last year amid the fight over his takeover. (Nathan Laine/Bloomberg via Getty Images, File / Getty Images)
The suit balked at Wachtell’s "success" fees paid by departing Twitter executives days before Musk’s takeover, calling the $90 million fee "unconscionable" because the firm had charged less than a third of the total few in its first few months of work, Reuters reported.
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On Thursday, Musk also threatened to sue Meta over its new rival app, Threads, which already has more than 70 million users since its launch Wednesday.
Threads was launched as Twitter announced last week users who haven’t signed up for the paid Blue status would be limited in the number of tweets they can view.
Musk has been mired in lawsuits since his controversial takeover of the platform, which was followed by massive layoffs and the decision to charge $8 per month for Blue checkmarks.
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Fox Business has reached out to Wachtell for comment.