Elon Musk sues Twitter's law firm for $90 million in damages

Mr. Elon Musk returned the $ 90 million (about 12.8 billion yen) compensation paid by Twitter to the American law firm `` Wachtell, Lipton, Rosen & Katz '' who acted as an agent for Twitter at the time of the acquisition of Twitter. sought and sued. Mr. Mask claims that 'Wachtell, Lipton, Rosen & Katz have claimed Twitter too much compensation.'

Musk sues law firm because he's mad that Twitter paid $90 million bill | Ars Technica

Elon Musk's Twitter sues top law firm Wachtell over $90 million fee

Mr. Mask purchased 9.2% of Twitter's shares on April 5, 2022 to become the largest shareholder , and proposed to acquire the remaining shares for a total of $ 44 billion (about 6.27 trillion yen). Twitter agreed to this proposal on the 26th of the same month.

Twitter agrees to acquire 5.6 trillion yen by Elon Musk - GIGAZINE

by Steve Jurvetson

However, on May 13 of the same year, Musk said, ``We will temporarily put the acquisition of Twitter on hold until we have data to support Twitter's estimate that 'spam and fake accounts are less than 5% of users.' He tweeted that he would put the acquisition of Twitter on hold until the facts were clarified. On July 8, 2019, the company announced that it was canceling the acquisition of Twitter 'because Twitter committed a material breach of the acquisition agreement and made misleading and false statements.'

Elon Musk announces that it will cancel the acquisition of Twitter - GIGAZINE

In response, Twitter prosecuted Mr. Musk, saying that ``not fulfilling the acquisition agreement is a breach of contract.''

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Mr. Mask, who was more likely to lose the trial with Twitter, revealed that he would 'buy Twitter again' to avoid losing the case.

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by Steve Jurvetson

Wachtell, Lipton, Rosen & Katz were the ones who filed a lawsuit on Twitter's side when Musk announced that he would not buy Twitter. Wachtell, Lipton, Rosen & Katz are under contract with Twitter from July to October 27, 2022, claiming $90 million in compensation. Of this amount, $ 84.3 million (about 12 billion yen) was paid on the day Mask's acquisition of Twitter was completed.

Most of this $84.3 million was a success fee for letting Mr. Musk, who once announced that he would stop the acquisition, proceed with the acquisition transaction again. Mr. Musk said that it is unclear how much of the $84.3 million is the success fee, but based on other invoices and unpaid fees, the success fee is $61 million (about 8.7 billion yen) to $72 million (about 103 million dollars). billion yen).

'While Wachtell, Lipton, Rosen & Katz, knowing that no one with an interest in Twitter's financials was in charge of the storefronts, gave the keys to Twitter to Mr. Musk,' Musk said in the lawsuit. In addition, he actually tried to enrich his private clothes with the money he got from the company's cash register.' In addition, Mr. Musk said that former Twitter general counsel, Sean Edget, had made a request to Wachtell, Lipton, Rosen & Katz as evidence that 'Wachtell, Lipton, Rosen & Katz did not have a written agreement on compensation fees.' I submitted the text of the email claiming compensation to the Twitter Board of Directors at the time. In reply to this e-mail, a member of the board of directors was shouting 'Oh my God, I'm crazy' when I saw the amount of compensation.

Mr. Musk has accused Wachtell, Lipton, Rosen & Katz of unjust enrichment, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and violation of California business and occupational laws, and will pay $90 million in compensation. I think it should be paid as compensation.

in Web Service, Posted by log1i_yk