SUMMARY
- Elon Musk's legal team targets Twitter's former law firm, Wachtell, Lipton, Rosen, and Katz, alleging an inflated $90M legal bill.
- Wachtell had successfully secured a privatization deal for Twitter, leading to Musk's acquisition despite initial withdrawal.
- Musk's holding company, X Corp, is seeking refund of the "associated excess fee payment" and attorneys' fees related to the litigation.
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Elon Musk's legal team launched a lawsuit this week, pointing fingers at the legal representation of Twitter during his audacious endeavor to privatize the company. They assert the law firm's charges for their services were exorbitantly high.
The legal documents detail accusations against the law firm, Wachtell, Lipton, Rosen, and Katz, which acted on behalf of Twitter before Musk's takeover. The dispute centers on a rather hefty $90 million legal bill that was allegedly prepared at the eleventh hour.
Wachtell came to Twitter's defense after Musk's retraction from his initial proposal to privatize Twitter for $44 billion. The law firm played a pivotal role in finalizing the deal in November 2022 and received the contentious $90 million fee for securing the transaction, which offered a substantial premium over Twitter's public market value.
Musk's holding company, X Corp., is currently demanding a refund of the "associated excess fee payment," including the attorneys' fees accrued from this lawsuit. In this legal endeavor, X Corp is being represented by Reid Collins & Tsai, a specialized litigation boutique situated in Austin, Texas.
Adding to the narrative, it seems that this is not the first occasion Musk has contested payment to Twitter's service providers. Following his takeover of Twitter, which added a hefty $13 billion in debt to the company's books, the company was sued no less than 26 times over non-payment to vendors as indicated by the online legal records database, Plainsite. The company even halted rent payments for its San Francisco headquarters and reportedly denied Google compensation for its cloud services.
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