[TAG0][TAG1]
- Charles River Associates, a consulting firm, is suing Twitter.
- According to the firm, it owes more than $2 million for work that it performed in forcing Elon Musk's purchase.
- Musk tried to withdraw from the deal, but he eventually signed it in October.
A consulting firm claims that it owes Twitter $2 million for the work it performed to force Elon Musk's takeover.
Musk announced his plans to purchase Twitter in April 2022. He then tried to cancel the deal three months later. Before the second-richest man in the world changed his mind and bought Twitter for $44 Billion in October, legal proceedings were initiated by the social-media company.
Charles River Associates filed the suit against Twitter in Massachusetts on Thursday. This was first reported by Bloomberg.
Insider reviewed court documents and found that the lawsuit states: "In connection to the Musk Litigation," Twitter's legal team asked CRA for expert consulting services.
According to court documents, the companies reached an agreement in August 2022 and CRA began work on the materials. Twitter's case against Musk was dropped after he completed the acquisition. However, CRA is now seeking the money it claims it owes.
CRA claims it sent four invoices for work totalling $2.19 Million to Twitter between September 2022 and November 2022, but that the company stopped responding to its emails.
According to the contract, the companies claim that the invoices earn 1.5% interest per month. Twitter has not objected, as per the lawsuit.
Charles River Associates denied that it had any comment to make on the pending litigation when Insider contacted them.
This suit is the latest against Twitter to be filed in recent months. Twitter was already sued by a private plane company for $197,725 unpaid bill. Last week, employees who were not paid their three months of severance payments were ordered to file individual arbitration claims rather than a class action lawsuit.
According to Kali Hays of Insider, the company has reduced costs by cutting staff and withholding rent payments. At least 12 offices have closed. Twitter will begin paying interest on $13 billion in loans it took out to finance Musk’s takeover as soon as possible.
Twitter didn't immediately respond to Insider’s request for comment.
—————————————————————————————————————————————
By: psyme@insider.com (Pete Syme)
Title: A consulting firm is suing Twitter, saying it is owed over $2 million for work it did trying to force through Elon Musk’s acquisition
Sourced From: www.businessinsider.com/twitter-sued-over-alleged-unpaid-2-million-related-musk-takeover-2023-1
Published Date: Fri, 20 Jan 2023 17:30:18 +0000
Related posts:
Report states that Twitter executives encouraged advertisers to be flexible with Elon Musk’s unpredictable nature as the company continues to lose advertising dollars.
Elon Musk is being accused by a lawyer representing many laid-off Twitter staff members of trying ‘fleece” workers over severance compensation.
Twitter is looking at whether to auction off inactive Twitter handle to raise more money, a report states
Who among us paid $100,000 for an old Twitter logo in Elon Musk’s auction?
Leave a Reply