Elon Musk Sues Former Twitter Executives’ Lawyers for Excessive $90 Million Bill
In a surprising turn of events, X Corp., the parent company of Twitter, has filed a lawsuit against the law firm Wachtell, Lipton, Rosen & Katz, hired by the former leadership of the microblogging service last year to assist in the $44 billion acquisition deal with Elon Musk. Musk had previously attempted to back out of the deal, citing misrepresentation of financial reporting by Twitter.
The lawsuit accuses Wachtell, Lipton, Rosen & Katz of exploiting their client by demanding $90 million in legal fees for just a few months of services. The document alleges that the law firm took advantage of Twitter’s financial well-being while the keys were being handed over to Musk.
According to the lawsuit, the legal firm billed a “success fee” of $84.3 million and an hourly rate of $16 million for their assistance in finalizing the deal with Musk. The hefty amount shocked former Twitter director Martha Lane Fox, who succinctly expressed her surprise in an email upon receiving the bill: “Oh my God.”
“Despite the initial shock, the Twitter board members, known as the ‘lame ducks,’ voted to approve the excessive and unethical payment to Wachtell,” the lawsuit claims. The document further reveals that $84 million was transferred to the law firm just minutes before the deal’s closure. “Wachtell boasts about its numerous former Delaware judges working in the firm. They specialize in legalized corruption,” Musk highlighted on Twitter.
- I'm Vasyl Kolomiiets, a seasoned tech journalist regularly contributing to global publications. Having a profound background in information technologies, I seamlessly blended my technical expertise with my passion for writing, venturing into technology journalism. I've covered a wide range of topics including cutting-edge developments and their impacts on society, contributing to leading tech platforms.
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