Elon Musk Files Lawsuit Against Law Firm Over Overcharge During Twitter Acquisition
Tesla and SpaceX CEO Elon Musk has filed a lawsuit against the law firm that represented Twitter during his attempt to purchase the company last year. Musk’s attorneys claim that Wachtell, Lipton, Rosen, and Katz overcharged during the transition of Twitter’s ownership.
According to the lawsuit, Wachtell, Twitter’s former law firm, accumulated a “last minute” legal bill amounting to $90 million. Musk’s legal team accuses Wachtell of taking advantage of the company’s unstable financial situation during the transition of ownership.
The lawsuit states, “Fully aware that nobody with an economic interest in Twitter’s financial well-being was minding the store, Wachtell arranged to effectively line its pockets with funds from the company cash register while the keys were being handed over to the Musk Parties.”
Wachtell had been representing Twitter after Musk initially tried to take the social media giant private for $44 billion. The deal eventually closed in November 2022, with Wachtell receiving a fee of $90 million for their services.
Twitter’s holding company, X Corp., is now seeking repayment of any excess fee payment and attorneys’ fees related to the litigation. Musk’s company, represented by Reid Collins & Tsai, a litigation boutique based in Austin, Texas, is taking action against Wachtell.
So far, attorneys from both Reid Collins and Wachtell have not commented on the lawsuit. It remains to be seen how the legal battle will unfold and if Musk will be successful in his claim.