Musk sues lawyers who represented Twitter against him
Arguing that the bill is too high, Musk sues the lawyers who represented Twitter (now “X Corp”) in its suit against him for trying to abandon his $44 billion takeover offer in 2022. (Filed in the Superior Court of California, the case is X Corp. v. Wachtell, Lipton, Rosen & Katz [CGC-23-607461].) Hoping to get back part of the $90 million Twitter paid Wachtell, Lipton, Rosen & Katz (WLRK), X Corp alleges that the law firm tried to “fundamentally alter its fee arrangement” toward the end of its representation of Twitter in order to get an “improper bonus payment in violation of its fiduciary and ethical obligations to its client.” The complaint says that the board had been surprised about the fees and alleges that the firm was “at the center of a spending spree” by Twitter’s departing executives. It says those executives:
ran up the tab at Twitter by, among other things, facilitating the improper payment of substantial gifts to preferred law firms like Wachtell on top of the firms’ full hourly billings by designating tens of millions of dollars in handouts to the firms as ‘success’ or ‘project’ fees.