Elon Musk has sued the prestigious law firm Wachtel, Lipton, Rosen & Katz to collect most of the $90 million fee he received from Twitter. The fee from the law firm came during Musk’s acquisition of the micro-blogging site for $44 billion.
The complaint was filed in California Superior Court in San Francisco on Wednesday by Musk’s company X Corp, which owns Twitter. Musk accused Wachtel that the law firm extorted large sums of money from its then-executives, who wanted Musk ousted, ahead of the October 27, 2022, acquisition of the social media company.
Demand for fees charged by Watchtel
The world’s richest man, who also runs Tesla Inc and SpaceX, called the $90 million payment “unreasonable” and pointed out that Wachtel had received more than a third of that amount for his work in another Delaware lawsuit a few months ago. Billed less.
The complaint states that while the keys were being handed over to Musk, Wachtel effectively planned to line his own pockets with company money. Musk wants to waive the “exorbitant” fees charged by Watchtel under an agreement signed by then Twitter chief legal officer Vijaya Gadde.
No response from Watchtel yet
The complaint also mentions then-Twitter director Martha Lane Fox, who wrote “oh my freaking god” in an email to General Counsel Sean Edgett, expressing her surprise at the amount being paid to lawyers. Watchtel is yet to comment on the matter.
Let us tell you that since Musk acquired Twitter, the company has been in a lot of controversies. This includes several lawsuits from landlords, vendors and consultants, including allegations of Musk being hard to pay bills and Twitter threats to sue Mark Zuckerberg’s Meta platform.