U.S.-based advisory firm Innisfree M&A Incorporated filed a lawsuit against Musk’s Twitter on February 3 in New York State Supreme Court, seeking around $1.9 million for what it says are unpaid bills after it advised the social media company on its takeover by Elon Musk in 2022.
“As of December 23, 2022, Twitter remains in default of its obligations to Innisfree under the Agreement in an amount of not less than $1,902,788.03,” the lawsuit highlighted.
Twitter and a lawyer for Innisfree failed to immediately reply to the request for comment. Musk in October finalized the $44 billion deal made public in April that year and took Twitter private.
In January, Britain’s Crown Estate, an independent commercial business in charge of the property portfolio belonging to the monarchy, said that it had started court proceedings against Twitter over alleged unpaid rent on its London headquarters.
Advertising spending on Twitter Inc fell by 71% in December, according to data from an advertising research firm, as major advertisers cut back their spending on the social media platform after Musk’s takeover.
Buy Crypto NowThe banks providing $13 billion in financing in 2022 for the Tesla chief executive’s purchase of Twitter shelved plans to sell the debt to investors due to uncertainty around the social media company’s fortunes and losses, Reuters reported in January.
Twitter made its first interest payment on a loan that banks provided to help finance Musk’s acquisition of the social media company in 2022, Reuters reported in January.
