Musk sues law firm because he’s mad that Twitter paid $90 million bill
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Elon Musk's X Corp. this week sued a law firm that Twitter hired last year after Musk tried to break their $44 billion merger agreement. Musk's lawsuit in San Francisco County Superior Court alleges that Wachtell, Lipton, Rosen & Katz overcharged Twitter when it collected $90 million-including $84.3 million on the same day Musk completed his purchase of Twitter.
"This action for equitable relief arises out of an effort by Wachtell to fundamentally alter its fee arrangement as litigation counsel in the twilight of its representation of Twitter to obtain an improper bonus payment in violation of its fiduciary and ethical obligations to its client," claimed the lawsuit filed by X Corp., the successor company to Twitter. "Wachtell exploited a corporate client left unprotected by lame duck fiduciaries who had lost their motivation to act in Twitter's best interest pending its imminent sale to Elon Musk and his entities, X Holdings I, Inc. and X Holdings II, Inc."
When Musk tried to pull out of his commitment to buy Twitter, the company hired Wachtell in July 2022 to handle the lawsuit that eventually forced Musk to complete the merger. Musk finally honored the merger contract in October when it became clear that he would likely lose in court.