te Twitter sues top law firm that received $90 million in Musk deal | Zee Business

Twitter sues top law firm that received $90 million in Musk deal

Wachtell, Lipton, Rosen & Katz, a top mergers and acquisitions firm, received a $90 million fee from Twitter, which according to the social network was "unjust enrichment", reports The New York Times.

Twitter sues top law firm that received $90 million in Musk deal
Twitter's previous management hired the corporate law firm after Musk tried to terminate his agreement to acquire the company last year. Pic: Reuters

Twitter has sued a law firm that represented the micro-blogging platform as Elon Musk tried to back out of his deal to buy the platform for $44 billion. Twitter's previous management hired the corporate law firm after Musk tried to terminate his agreement to acquire the company last year.

Wachtell, Lipton, Rosen & Katz, a top mergers and acquisitions firm, received a $90 million fee from Twitter, which according to the social network was "unjust enrichment", reports The New York Times.

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Twitter now wants the fee to be returned. The lawsuit has been filed in San Francisco Superior Court by X Corp, Twitter's parent company.

The lawsuit said Wachtell Lipton took "funds from the company cash register while 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 had succeeded in making Musk abide by his agreement to buy the company.

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Twitter had disputed other fees related to Musk's purchase of the company."An advisory firm, Innisfree M&A, sued Twitter for $1.9 million in February over what it said were unpaid bills. 

Joele Frank, a public relations firm, sued Twitter in May, arguing that it wasn't paid about $830,498 for services rendered in the deal," the report said.

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Written By: IANS
Updated: Sat, Jul 08, 2023
10:04 am
IANS
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