Twitter sued over $1.9m in unpaid bills

BENGALURU/SAN FRANCISCO — The US-based advisory firm Innisfree M&A Incorporated sued Twitter on Friday in the 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 Dec 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 the request for comment.

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

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

Advertising spending on Twitter dropped 71 percent 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.

In another development, a US jury on Friday found Musk and his company Tesla were not liable for misleading investors when Musk tweeted in 2018 that he had "funding secured" to take the electric car company private.

Plaintiffs had claimed billions in damages and the decision also had been seen as important for Musk himself, who often takes to Twitter to air his views.

The jury came back with a unanimous verdict roughly two hours after beginning deliberations.

Nicholas Porritt, a lawyer for the investors, said in a statement: "We are disappointed with the verdict and are considering next steps."

"A dark chapter is now closed for Musk and Tesla," Wedbush analyst Dan Ives said. Ives added that some Tesla investors feared Musk might have to sell more Tesla stock if he lost.

Minor Myers, who teaches corporate law at the University of Connecticut and who had previously called the investors' case strong, called the outcome "astounding".

The US anti-securities fraud law "has always been thought to be this great bulwark against misstatements and falsehoods", he told Reuters.

"This outcome makes you wonder if it is up to the job in modern markets," he said, adding that Musk himself was likely to "double down" on his communication tactics after the verdict.

Agencies Via Xinhua