Former PR Firm Sues Twitter for Unpaid Bills Following Elon Musk’s Buyout

In a legal battle between Twitter and its former public relations firm, Joele Frank, the social media company is being sued for allegedly failing to pay its bills since Elon Musk’s $44 billion acquisition. The lawsuit, filed on Friday, claims that Twitter owes $830,498, which includes six outstanding invoices and additional costs related to a subpoena in Twitter’s lawsuit against Musk. The legal action stems from Musk’s attempt to back out of the buyout, prompting Twitter to take legal measures to ensure completion.

Communication Breakdown and Unfulfilled Payments

According to Joele Frank, Twitter terminated its contract on November 16, just three weeks after the acquisition was finalized. The PR firm alleges that Twitter has since refrained from engaging in meaningful discussions regarding the unpaid invoices, resorting only to an automated response promising to initiate payment processing. The lack of communication and non-payment has led Joele Frank to pursue legal action to seek payment for its services.

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Twitter’s Response and Musk’s Involvement

Interestingly, Twitter, which is also known as X Corp, no longer maintains a media relations office. In response to the lawsuit, the company simply replied with a poop emoji, indicating a dismissive or mocking attitude. Elon Musk, on the other hand, was copied on the request for comment but has not yet responded. Musk himself has been embroiled in various legal battles since acquiring Twitter, including disputes over unpaid bills inherited from the company’s previous owners.

(Read Also: Twitter to Quit EU’s Disinformation Code)

Twitter Faces Multiple Lawsuits and Financial Challenges

In addition to the lawsuit filed by Joele Frank, Twitter is facing legal action in Delaware from three former executives, including Parag Agrawal, whom Musk ousted as CEO. The executives claim that Twitter failed to fulfill its obligations to reimburse over $1 million in legal fees. These legal challenges, along with unresolved bills, have put Twitter in a precarious financial situation. Despite a decline in advertising revenue, Musk remains optimistic about Twitter’s potential to generate positive cash flow in the coming quarter.

Musk’s Evaluation and Implications

Elon Musk, one of the world’s wealthiest individuals and the CEO of Tesla Inc, has estimated that Twitter’s value has decreased by more than half since his acquisition. This assessment, reported in various publications, highlights the challenges the company has faced and the need for strategic measures to restore growth and profitability. The outcome of the legal disputes, including the lawsuit brought by Joele Frank, will have implications for Twitter’s financial standing and reputation.

Legal Battle Continues in New York Supreme Court

The lawsuit, titled JF Associates LLC v X Corp, has been filed in the New York State Supreme Court located in New York County.

As the case proceeds, the parties involved will present their arguments and evidence in pursuit of a resolution. The outcome of the legal battle will have significant consequences for both Twitter and the former PR firm, shaping their financial obligations and business relationships moving forward.