Twitter sues over $1.9 million bill that consulting firm Innisfree M&A claims went unpaid
- Innisfree M&A says it was hired last year to facilitate communication between Twitter and shareholders.
- After Musk’s purchase was finalized, Innisfree tweeted a $1.9 million bill that was “processed” a month later.
- The lawsuit alleges that Twitter has not responded to Innisfree accounts and emails since December.
The lawsuit, filed Friday in New York State Supreme Court by Innisfree M&A Inc., alleges that Twitter never paid the consulting firm more than $1.9 million for services rendered by the company during its sale of Twitter to Elon Musk last year.
In the lawsuit, Innisfree claims it was hired last May to facilitate communication with shareholders about a September meeting where they would vote on Musk’s potential purchase of the social media giant.
After the vote on Musk’s final purchase was completed, Innisfree’s work was completed, and a $1,902,788 bill was posted on Twitter a few weeks later, according to the New York Times. Innisfree claims to have submitted the invoice in September and was informed in October that it was “successfully processed” even though the firm has yet to receive payment.
After being contacted twice in December by Innisfree for not making payments, Innisfree said Twitter has not contacted the firm since then, leading it to file a lawsuit over alleged breach of their agreement, according to the Wall Street Journal. .
The lawsuit is the latest in a string of recent legal and regulatory lawsuits filed against Twitter, including, among other things, allegations of non-payment of rent and another unpaid bill from a private jet company.
The owner of Twitter’s San Francisco office said in a lawsuit filed last month that the company failed to pay rent in December and January and was therefore several million dollars in debt. Another San Francisco landlord sued around $130,000 in early January for unpaid rent, and a real estate company owned by King Charles III also sued Twitter over unpaid rent at its London office.
Another $2 million in consulting fees is the subject of a lawsuit filed last month by Charles River Associates. The company is said to have provided various advisory services to Twitter while it was still suing Musk to force him to make the acquisition after the billionaire tried to back out. The lawsuit was dismissed when the sale took place late last year, but Charles River Associates said in its lawsuit that the money was never paid.
The insider previously reported that Musk’s drastic cost-cutting measures, including layoffs and halting lease payments, were intended to free up money to start paying interest on the $13 billion debt he took on to complete the acquisition.
A request for comment from Twitter went unanswered Sunday afternoon.
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