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Twitter sued by former PR firm for unpaid bills following Elon Musk's acquisition

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Joele Frank, a former public relations firm for Twitter, has filed a lawsuit against the social media giant, claiming that it has failed to settle outstanding invoices since Elon Musk's $44 billion buyout. The lawsuit, filed in a New York state court in Manhattan, states that Twitter owes a total of $8,30,498, encompassing six unpaid invoices, in addition to the costs incurred for a subpoena in Twitter's legal battle to compel Musk to complete the buyout after he attempted to withdraw from the deal.

According to Joele Frank, Twitter terminated their contract on November 16, just three weeks after the completion of the buyout, and has since ceased communication regarding the payment demand, except for an automated assurance that it will initiate processing without delay.

It is worth noting that Twitter, also known as X Corp, no longer maintains a media relations office. In response to a request for comment on the lawsuit, the company replied with a poop emoji. As of now, there has been no immediate response from Musk's legal representative, who was copied on the inquiry.

Joele Frank had been serving as Twitter's PR firm since January 2015, as stated in their complaint. The firm's lawsuit adds to a growing list of litigations against Twitter by landlords, vendors, and consultants seeking payment for outstanding bills that Musk inherited when he acquired the company and subsequently implemented significant cost-cutting measures.

Also read: 'Twitter 2.0': Elon Musk's Twitter CEO pick Linda Yaccarino on future of the platform

In addition to Joele Frank's lawsuit, Twitter is also facing legal action in Delaware from three former executives, including Parag Agrawal, whom Musk ousted as CEO. The plaintiffs allege that Twitter failed to fulfil its obligations to reimburse over $1 million in legal fees.

Musk, the second-richest person in the world and CEO of Tesla Inc, has expressed his belief that Twitter could achieve positive cash flow as early as this quarter, despite a decline in advertising revenue. Reports indicate that Musk estimates Twitter's value has declined by over 50 per cent since his acquisition.

The case, titled JF Associates LLC v X Corp, is currently being heard in the New York State Supreme Court, New York County.

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