Twitter, the popular social media platform, is once again in the midst of controversy as Joele Frank, a former public relations (PR) firm, sues the company for over $800,000 in alleged unpaid invoices.
The lawsuit was filed on Friday by Twitter’s former PR firm, accusing the company of failing to settle outstanding bills since Elon Musk’s acquisition of the company in October of last year.
According to Reuters, the PR firm and Twitter severed ties on November 16, just three weeks after Musk took over, but the firm claims that Twitter still owes a total of $830,498 across six unpaid invoices.
— Reuters (@Reuters) May 26, 2023
The PR firm stated that the social media giant has stopped responding to its payment requests and has instead been sending automated assurances to “get started processing it right away.”
This is notthe first time Twitter has faced accusations of non-payment. Since Musk took over the leadership of the company, at least 10 vendors have filed lawsuits against Twitter, claiming unpaid bills for their services.
Other Lawsuits Against Twitter
In addition to the Joele Frank lawsuit, three former executives, including former CEO Parag Agrawal, are suing Twitter, alleging that the company reneged on its obligation to reimburse them more than $1 million in legal fees.
Bloomberg has reported that Twitter is also overdue on more than $10 million in payments to numerous smaller companies, ranging from public relations firms to providers of branded merchandise. These smaller vendors have reported that they stopped receiving personal responses from Twitter’s accounts payable department and instead received repetitive responses from a bot.
Apart from PR firms and former executives, other companies and landlords have also accused Twitter of owing them money in recent months and have filed their own lawsuits.
The United Kingdom’s Crown Estate filed a lawsuit against Twitter in January for unpaid rent at the company’s London Headquarters. Similarly, the landlord of Twitter’s San Francisco headquarters has sought legal action over alleged unpaid rent bills.
Twitter’s Response and Elon Musk’s Perspective
In response to the PR firm’s lawsuit, Twitter, also known as X Corp, did not provide a meaningful comment and instead replied with a poop emoji. There has been no immediate response from Elon Musk’s legal representative regarding the inquiry.
Musk, the CEO of Tesla and the second-richest person in the world, has expressed his belief that Twitter could achieve positive cash flow as early as this quarter, despite a decline in advertising revenue. He estimates that Twitter has lost over 50% of its value since he acquired it.
The case, titled JF Associates LLC v X Corp, is currently being heard in the New York State Supreme Court, New York County. It represents another chapter in the ongoing saga of financial disputes surrounding Twitter and raises questions about the company’s ability to manage its debts and obligations moving forward.
The outcome of these legal actions will determine the financial repercussions for Twitter and Elon Musk as they strive to resolve the unpaid bills and contractual obligations.
- Scientists Used AI to Discover New Antibiotic Effective Against Superbugs
- OpenAI Launches Grant Program to Fund ‘Democratized’ AI Regulation
- 12 Best Altcoins to Invest in 2023 – Which New Altcoins to Buy?
What's the Best Crypto to Buy Now?
- B2C Listed the Top Rated Cryptocurrencies for 2023
- Get Early Access to Presales & Private Sales
- KYC Verified & Audited, Public Teams
- Most Voted for Tokens on CoinSniper
- Upcoming Listings on Exchanges, NFT Drops