New Delhi: Twitter has sued a law firm representing the micro-blogging platform as Elon Musk tried to back out of its deal to buy the platform for $44 billion. Twitter’s previous management hired the corporate law firm after Musk tried to terminate its agreement to acquire the company last year.
Top merger and acquisition firm Wachtel, Lipton, Rosen & Katz received a $90 million fee from Twitter, which the social network says was “unjust enrichment,” The New York Times reported.
Twitter now wants this fee refunded. The lawsuit has been filed in San Francisco Superior Court by Twitter’s parent company X Corp.
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The lawsuit states that Wachtel Lipton “took funds from the company’s cash register when the keys were being handed over to Musk”, who owns X Corp.
According to documents submitted with the lawsuit, Twitter’s board and executives approved the $90 million payment because the law firm was successful in getting Musk to abide by its agreement to buy the company.
Twitter disputed other charges related to Musk’s purchase of the company.
“An advisory firm, Innisfree M&A, sued Twitter in February for $1.9 million over unpaid bills. Joel Frank, a public relations firm, sued Twitter in May, arguing that it was provided Approximately $830,498 was not paid for the services rendered in the transaction,” the report said.