Elon Musk company, X Corp, which owns Twitter, wants to recover a large part of the $90 million fee that Wachtell received for helping defeat Musk’s attempt to back out of buying Twitter for $44 billion.
Elon Musk, the CEO of Twitter, is taking legal action against a law firm called Wachtell, Lipton, Rosen & Katz. Musk’s company, X Corp, which owns Twitter, wants to recover a large part of the $90 million fee that Wachtell received for helping defeat Musk’s attempt to back out of buying Twitter for $44 billion.
Musk believes that Wachtell took advantage of the situation by accepting huge fees from departing Twitter executives who were happy that Musk would be forced to complete the purchase. Musk thinks the $90 million payment is too high considering Wachtell did much less work for its smaller fee in the Delaware lawsuit.
“Wachtell arranged to effectively line its pockets with funds from the company cash register while the keys were being handed over” to Musk, the complaint said.
“Musk aims to recover the substantial fees that Wachtell had invoiced. He alleges that Vijaya Gadde, a partner at Wachtell and Twitter’s chief legal officer, endorsed an agreement on the same day the acquisition was finalized, thereby authorizing the imposition of additional charges.”
In the lawsuit, Martha Lane Fox, a former Twitter director, is cited for her reaction upon learning about the lawyers’ payment amount. Upon discovering the fees, she expressed her astonishment by sending an email to Twitter’s general counsel.
As of now, Wachtell has not provided any comments in response to the requests made. Additionally, the report clarifies that Vijaya Gadde, Martha Lane Fox, and the general counsel are not named as defendants in the lawsuit.
Since Musk assumed control of Twitter, the company has encountered various legal conflicts. Lawsuits have been filed against Musk by landlords, vendors, and consultants who claim non-payment for their services. Additionally, Twitter has issued a threat to sue Meta Platforms, owned by Mark Zuckerberg, in relation to their new Threads app.
Wachtell has indeed faced lawsuits involving billionaires in the past. One notable instance was their protracted legal dispute with Carl Icahn concerning his takeover of CVR Energy in 2012. Subsequently, Icahn filed a malpractice lawsuit against Wachtell; however, the case was eventually dismissed by the judge.
According to Reuters, the lawsuit between X Corp and Wachtell is currently being heard in the California Superior Court located in San Francisco. The case has been assigned the case number CGC-23-607461. The news story was reported by Jonathan Stempel from New York and edited by Marguerita Choy.
Information Source: indiatoday
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