Advisory firm Innisfree sues Musk's Twitter for $1.9 million in unpaid bills


FILE PHOTO: The logo for Twitter is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 1, 2022. REUTERS/Brendan McDermid

(Reuters) - U.S.-based advisory firm Innisfree M&A Incorporated sued Twitter on Friday in New York State Supreme Court, seeking about $1.9 million for what it says are unpaid bills after it advised the social media company on its acquisition by Elon Musk last year.

"As of December 23, 2022, Twitter remains in default of its obligations to Innisfree under the Agreement in an amount of not less than $1,902,788.03," the lawsuit said.

Twitter and a lawyer for Innisfree did not immediately respond to request for comment.

Musk in October closed the $44 billion deal announced in April that year and took Twitter private.

Last month Britain's Crown Estate, an independent commercial business that manages the property portfolio belonging to the monarchy, said that it had begun court proceedings against Twitter over alleged unpaid rent on its London headquarters.

Advertising spending on Twitter Inc dropped by 71% in December, data from an advertising research firm showed, as top advertisers slashed their spending on the social-media platform after Musk's takeover.

The banks providing $13 billion in financing last year for the Tesla chief executive's acquisition of Twitter abandoned plans to sell the debt to investors because of uncertainty around the social media company's fortunes and losses, Reuters reported last month.

Twitter made its first interest payment on a loan that banks provided to help finance Musk's purchase of the social media company last year, Reuters reported last month.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Marguerita Choy)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

Analysis-Europe stock pickers go old-school to ride the next wave in AI
Analysis-Earnings from AI-heavyweight Nvidia to test US stocks’ record run
Study: UK firms offer wage premium for AI workers in bid for growth
Apple fights €1.8bil EU antitrust fine for curbs on Spotify
Microsoft introduces Copilot assistant to help teams collaborate
16 top AI firms make new safety commitments at Seoul summit
Can pink noise enhance sleep and memory? Early research drives a colour noise buzz
Google set to bring ads in search AI Overviews
AI startup Anthropic hires Airbnb veteran Krishna Rao as first CFO
Apple says US antitrust lawsuit should be dismissed

Others Also Read