Twitter not paying PR firm’s bills after Elon Musk buyout: Report
(Reuters) – A former Twitter relations firm sued the social media company on Friday, saying it had failed to pay its bills since Elon Musk’s $44 billion buyout.
Joel Frank said Twitter owes $830,498, which consists of six unpaid invoices and subpoena costs in Twitter’s lawsuit to force Musk to complete the deal after he tried to back out.
The PR firm said Twitter terminated its contract on Nov. 16, three weeks after the deal closed, and no longer communicates about its payment request other than an automatic promise to “start processing it immediately.”
Twitter, also known as X Corp, no longer has a media relations office. He responded to a request for comment about the lawsuit using a stool emoji. A lawyer for Musk, who obtained a copy of it upon request, did not immediately respond.
Joel Frank started working for Twitter in January 2015, according to a complaint he filed in New York State Court in Manhattan.
A number of real estate agents, vendors and consultants have sued Twitter over unpaid bills Musk racked up when he bought the company before implementing major cost-cutting measures.
Three former CEOs are also suing Twitter in Delaware, including Parag Agrawal, whom Musk ousted as CEO and who he says neglected to pay more than $1 million in legal fees.
Musk said Twitter could generate positive cash flow as early as this quarter despite lower advertising revenue.
The world’s second-richest person, who also runs electric car company Tesla Inc., has estimated that Twitter has lost more than half of its value since buying it, according to published reports.
In the case of JF Associates LLC v. X Corp, Supreme Court of the State of New York, District of New York.
