Yes, you read that right. Musk is in the news again. Elon Musk is throwing some serious legal punches at the acclaimed law firm Wachtell, Lipton, Rosen & Katz. He’s simply not having it, it seems. Musk wants to snatch back a massive chunk of that whopping $90 million fee they got from Twitter. He’s playing hardball and seeking justice. Let the battle begin, and let’s learn more about it.
This fee was given to them to prevent Elon from abandoning his $44 billion purchase of the social media giant.
The lawsuit, filed by Musk’s company X Corp, which happens to be the owner of Twitter, was submitted on Wednesday to the California Superior Court in San Francisco.
Musk accuses Wachtell of exploiting the situation by accepting substantial “success” fees from departing Twitter executives during the final days leading up to the buyout’s closure on October 27, 2022.
These executives expressed their gratitude because Musk was obligated to proceed with the acquisition.
The matter is now heading to court as Elon Musk stands firm in his claims and seeks justice.
The richest person in the world, who also runs Tesla and SpaceX, is pretty upset about a $90 million payout. They think it needs to be more fair because the law firm Wachtell only charged a third of that amount for their work on the Delaware lawsuit.
The person, Elon Musk, wants to get back the extra money that Wachtell charged. They made a deal with Wachtell on the day the deal closed, and Musk thinks it needs to be corrected. He mentioned that Wachtell took money from the company while everyone was busy with the transition.
Some other people were surprised by the amount Wachtell was charging too. One person emailed the company saying, “O My Freaking God,” when they found out. But the people who sent that email and others are not involved in the lawsuit.
Wachtell hasn’t said anything about this situation yet. And the lawsuit doesn’t involve Twitter’s chief legal officer or others mentioned in the article.
Since Elon Musk bought Twitter, the company has been dealing with many legal problems. There are lawsuits from different people claiming they didn’t get paid, and even a possible lawsuit against Mark Zuckerberg’s company for a new app they released.
Wachtell has dealt with lawsuits from billionaires before. They spent a long time in court with Carl Icahn over his takeover of CVR Energy in 2012.
In 2018, a judge threw out a claim by Icahn saying that Wachtell didn’t do their job properly. Icahn ended up having to pay more money to the banks that helped defend his company against the takeover.
The case is called X Corp v Wachtell, Lipton, Rosen & Katz, and it’s in the California Superior Court in San Francisco. The case number is CGC-23-607461.
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