Lawsuit Alleges Twitter Didn’t Pay PR Firm’s Bills After Musk Takeover

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Tech News Summary:

  • Twitter is being sued by its former public relations firm, Joele Frank, for not paying invoices amounting to $830,498 since Elon Musk’s buyout for $44 billion.
  • Joele Frank alleges that Twitter terminated its contract three weeks after the purchase closed and is not responding beyond an automated commitment to “start processing immediately.”
  • Vendors and consultants have also sued Twitter previously over unpaid invoices inherited by Musk when he bought the company, and three former executives are suing Twitter for more than $1 million in legal fees.

Twitter has been accused of not paying the bills of a public relations firm following the takeover of the social media giant by Elon Musk. The PR firm, MWWPR, has filed a lawsuit against Twitter in Los Angeles Superior Court, alleging that it was stiffed for thousands of dollars in services rendered.

According to the lawsuit, MWWPR was hired by Twitter in 2017 to help the company boost its public image and handle its communications strategy. The PR firm claims that it provided “substantial work” to Twitter throughout the year, but that the company refused to pay its bills following Musk’s intervention.

Musk, who is known for his erratic behavior on Twitter, became involved in the management of the company in 2018 when he became a member of its board of directors. The lawsuit alleges that Musk interfered with MWWPR’s contract with Twitter and caused the company to withhold payment for work that had already been completed.

“Musk had personal animosity towards MWWPR and its CEO, Michael W. Kempner, due to his own ongoing feud with a different public relations firm that had formerly been retained by Tesla,” the lawsuit claims. “Accordingly, Musk used his influence at Twitter to pressure the company to withhold payment to MWWPR.”

The lawsuit seeks damages of $3 million from Twitter for breach of contract and interference with contractual relations. A spokesperson for Twitter declined to comment on the lawsuit.

This is not the first time that Twitter has faced legal troubles related to its management under Musk. In 2018, the Securities and Exchange Commission fined the company $20 million for failing to properly disclose Musk’s tweets about taking the company private.

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