Twitter owes PR company following Musk purchase, complaint claims 2023

Friday, a former public relations firm for Twitter filed a lawsuit against the social media company, alleging that it has not paid its expenses since Elon Musk’s $44 billion acquisition.

Joele Frank reported that Twitter owes $830,498 comprised of six unpaid invoices and expenses for a subpoena issued in Twitter’s lawsuit to force Musk to complete the buyout after he attempted to back out.

Twitter terminated its contract with the public relations firm on November 16, three weeks after the buyout closed, and no longer communicates about its payment demand beyond an automated promise to “start processing it immediately.”

After Musk takeover, Twitter not paying PR firm’s costs, complaint argues.

Twitter, also known as X Corp, has discontinued its media relations department. It replied with a feces emoticon to a request for comment on the lawsuit. A counsel for Musk who was copied on this request did not respond promptly.

According to Twitter’s complaint in New York state court in Manhattan, Joele Frank began working for Twitter in January 2015.

Many landlords, vendors, and consultants have filed lawsuits against Twitter for unpaid bills that Musk inherited when he purchased the company, prior to implementing significant cost reductions.

Twitter is also being sued in Delaware by three former executives, including former CEO Parag Agrawal, who allege that the company breached its promise to reimburse more than $1 million in legal fees.

Despite a decline in advertising revenue, Twitter could generate positive cash flow as early as this quarter, according to Musk.

According to published reports, the second-richest person in the world, who also controls the electric vehicle company Tesla Inc, estimates that Twitter has lost more than half of its value since he purchased it.

Leave a Reply