Elon Musk sues ex-law firm over $90M before acquisition.

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It was a day of excitement and mischief when the kids got their hands on their new dad’s credit card. They went on a shopping spree, buying all the things they had been dreaming of.

Elon Musk Takes Legal Action Against Twitter’s Former Law Firm

Elon Musk’s X Corp. has filed a lawsuit against Wachtell, Lipton, Rosen & Katz, the law firm that represented Twitter during Musk’s attempt to take the company private. The lawsuit accuses the firm of unethical behavior and seeks to recoup the exorbitant fees charged for defeating Musk’s buyout of Twitter.

The Lawsuit Alleges Excessive Fees and Unethical Conduct

The lawsuit, filed in California Superior Court, claims that Wachtell charged a staggering $90 million fee for its services, which represented nearly 10% of the firm’s gross revenue in 2022. The lawsuit accuses Wachtell of disregarding California law and its ethical and fiduciary duties in order to solicit this excessive fee.

FRAUD: Former Twitter execs conspired to empty the company’s bank accounts after @elonmusk agreed to close the transaction. For example, in one scheme, execs gave the company’s lawyers a $90M bonus! Musk is suing to get the fraudulent bonus back. https://t.co/qlelCCYWvg

— @amuse (@amuse) July 7, 2023

Seeking Equitable Remedies

The lawsuit does not seek compensatory damages but rather aims to obtain restitution, fee forfeiture, and disgorgement of legal fees as equitable remedies.

Does Musk Have a Winning Case?

Twitter’s Turbulent Acquisition

After initially agreeing to acquire Twitter, Musk raised concerns about the platform’s lack of disclosure regarding spam and fake accounts. In response, Twitter filed a lawsuit against Musk for failing to fulfill his commitment to the company’s shareholders. Eventually, Musk proceeded with the purchase at the agreed-upon price.

Some very strong allegations here of Twitter’s former senior management before Musk took over:

“X Corp. claims that by arranging to bill Twitter its hourly rates instead of taking the case on a contingency basis, Wachtell “undertook absolutely no risk in obtaining its mammoth…

— Tim (@CitizenYvr) July 8, 2023

Wachtell allegedly charged excessive fees under an agreement signed by Vijaya Gadde, Twitter’s chief legal officer. Gadde’s involvement in controversial actions, such as the coverup of Hunter Biden’s laptop, has raised further questions about her conduct.

While the legal battle unfolds, it appears that Gadde made a last-minute decision to give a $90 million “success” fee to Twitter’s lawyers, emptying the company’s coffers on her way out. These actions, along with other questionable behavior by Twitter staff, have undermined free and open discourse in the United States.

Musk’s involvement has brought about a much-needed change, as he has taken steps to restore trust in the platform by ending censorship and shedding light on the company’s internal workings.

However, standing up for the First Amendment has come at a cost for Musk. He shouldn’t have to pay for the actions of disgruntled or unethical employees looking to harm him.

The post Elon Musk Sues Twitter’s Former Law Firm – He Noticed Where $90 Million Went Right Before He Bought Company appeared first on The Western Journal.

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