US-based advisory firm Innisfree M&A Incorporated sued Twitter on Friday in New York State Supreme Court, seeking about $1.9 million compensation for what it says are unpaid bills. Reuters File Photo
New York: US-based advisory firm Innisfree M&A Incorporated sued Twitter on Friday in New York State Supreme Court, seeking about $1.9 million compensation for what it says are unpaid bills after it advised the social media company on its acquisition by Elon Musk last year.
“As of December 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 respond to queries.
Elon Musk in October closed the $44 billion deal announced in April that year and took over microblogging platform Twitter.
In January 2023, Britain’s Crown Estate, an independent commercial business that manages the property portfolio belonging to the monarchy, said that it had begun court proceedings against Twitter over alleged unpaid rent on its London headquarters.
Advertising spending on Twitter Inc dropped by 71% 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 that had provided $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, according to media reports.
Recently, 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.
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