April 14, 2024

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Elon Musk demands $90M increase by Twitter Law Firm as company changes hands – Deadline

Elon Musk demands $90M increase by Twitter Law Firm as company changes hands – Deadline

Elon Musk’s lawyers sued the law firm that represented Twitter when Musk was trying to buy the company last year, alleging increased costs when the company was moving to new ownership.

Wachtel, Lipton, Rosen and Katz, which was Twitter before Musk’s acquisition, raised a “last minute” legal bill of $90 million, the suit alleges.

“Quite realizing that no one with an economic interest in Twitter’s financial well-being cared about the store, Wachtell arranged for its own pockets to be effectively lined with money from the company’s cash register while handing over the keys to Musk’s parties,” Musk’s suit said. .

Wachtell represented Twitter after Musk tried to withdraw his initial bid to make Twitter private for $44 billion. The deal eventually closed in November 2022, with Wachtell receiving a fee of $90 million for her work.

X Corp. Twitter Inc., the Twitter holding company, is to reimburse “any overpayment associated with fees” and attorneys’ fees associated with the cost of litigation. Mask Inc. is represented by Reid Collins & Tsai, a litigation shop based in Austin, Texas.

Attorneys for Reid Collins and Wachtell have not spoken publicly about the lawsuit.

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