Ali Arsalan
In a legal dispute that has attracted considerable attention, Elon Musk has taken legal action against the law firm that represented Twitter during his attempted acquisition of the company. According to Musk’s attorneys, the law firm allegedly overcharged during the phase when Twitter was transitioning to new ownership.
This raises a question: Were the financial dealings surrounding the high-stakes acquisition handled fairly?
Elon Musk Files Lawsuit Alleging $90M Overcharge by Twitter’s Former Law Firm
According to a recently filed lawsuit, the law firm Wachtell, Lipton, Rosen, and Katz, which previously represented Twitter, is accused of racking up a $90 million legal bill during Elon Musk’s acquisition of the company. Musk’s lawsuit claims that Wachtell took advantage of the situation, capitalizing on the lack of oversight regarding Twitter’s financial well-being.
Initially, Musk attempted to take Twitter private for $44 billion but later closed the deal in November 2022. However, the lawsuit alleges that Wachtell received an exorbitant fee of $90 million for its services during the acquisition process.
Twitter’s Holding Company Seeks Repayment in Lawsuit Against Musk as Attorneys Remain Silent
Twitter’s holding company, X Corp., is seeking repayment of excess fees and attorneys’ fees associated with litigation in their lawsuit against Elon Musk. Musk’s company is represented by the Austin-based litigation boutique, Reid Collins & Tsai. However, attorneys from both Reid Collins and Wachtell, the law firm involved in the case, have not made any public statements regarding the ongoing lawsuit.
The silence from the legal representatives adds to the intrigue surrounding the matter.