New Delhi:- Elon Musk must be under a lot of stress right now. Between training for a siege (or literally "measurement contest") with Mark Zuckerberg and watching Twitter rival Threads become the fastest-growing app of all time, the world's richest man is suing the law firm that represented Twitter. Get out of a $44 billion acquisition.
Both Musk's X companies filed lawsuits last week against Wachtell, Lipton, Rosen, and Katz for allegedly overcharging Twitter in a "last minute" legal bill.
Wachtell represented Twitter, and Musk tried to turn down an offer to buy Twitter for $40 billion. As a result, the contract was completed in November 2022, and a fee of $ 90 million was paid in consideration. On October 27, 2022, when the merger was completed, $84.3 million was paid out, most of which was a "performance fee."
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Additional's lawsuit charged $16 million for hourly service, plus a performance fee that the company needed to close the deal. So Mr. Musk's company is trying to collect the money.
Wachtell is a lame trustee unwilling to act in Twitter's best interests until its imminent sale to Elon Musk and his company’s X Holdings I and X Holdings II. It took advantage of a corporate customer who was left unprotected by a person," the lawsuit alleges.
The complaint further states, "We are aware that no one with a stake in Twitter's financial health cares for the store, and Mr. Wachtell will take care of his own while handing over the keys to Mr. Musk and others." We have effectively filled our pockets with company safes," he added.
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Twitter's holding company, X Corp, is now seeking reimbursement of all excess fees and attorneys' fees related to litigation costs.
Former Twitter director and board member Martha Lane Fox expressed her regret over the charges in her email after sending a copy to the company's former general counsel, Sean Edgett, according to court documents. expressed. "Oh my god, my god," she wrote. However, the Twitter board voted to approve the fee. In his lawsuit, Mr. Wachtell alleges unjust enrichment, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and violation of the California Business and Professional Code.
According to Musk, even if the court did not force Wachtell to return all fees, Wachtell "received a total of $90 million in fees, plus the reasonable fees it would have received if it had received them." We will collect the difference between The billing policy he agreed to on the June 21st purchase order.
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Mr. Musk is no stranger to avoiding bills. According to insiders, he refused to pay Twitter office rent, former employee expenses, and bills for Google Cloud services. In related news, the ongoing "will they cage" battle between Mr. Musk and Mr. Zuckerberg has literally taken off with Mr. Musk, who has 10 children, pitching the idea. It is said that there is a possibility that it will turn into a genital measurement contest. He also called Zuckerberg an idiot. Twitter has already threatened to sue Meta for allegedly copying the thread's IP, making things more tense than ever between the tiny billionaire and Facebook's alleged lizard king.
The richest person in the World Elon Musk is now suing the law firm that forced Musk to buy Twitter but he was not interested and also was taking back off the offer.