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Thursday, June 1, 2023

Former Twitter PR Firm Sues for Non-Payment

Former Twitter PR Firm Sues for Non-Payment – On Friday, a lawsuit was filed against Twitter by Joele Frank, a former public relations firm, alleging non-payment of invoices following Elon Musk’s $44 billion acquisition. The lawsuit claims that Twitter owes a total of $830,498, which includes six outstanding invoices, along with expenses incurred for a subpoena related to Twitter’s legal action against Musk to enforce the completion of the buyout, as he initially attempted to withdraw from the deal.

The public relations firm said Twitter ended its contract on Nov. 16, three weeks after the buyout closed, and no longer communicates about its payment demand beyond an automated pledge to “get started processing it right away.” Twitter, known as X Corp, no longer maintains a media relations office, and their response to a request for comment regarding the lawsuit was simply a poop emoji. 

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Notably, a lawyer representing Elon Musk, who was copied on the request, has not yet provided an immediate response. According to Joele Frank’s complaint filed in a New York state court in Manhattan, they started working for Twitter in January 2015. When Musk acquired Twitter, he inherited various outstanding bills from landlords, vendors, and consultants, resulting in numerous lawsuits against the company. 

Subsequently, Musk implemented significant cost-cutting measures. Apart from the lawsuit mentioned earlier, Twitter is also facing legal action in Delaware by three former executives, including Parag Agrawal, whom Musk ousted as CEO. The executives claim that Twitter failed to fulfill its obligations to reimburse over $1 million in legal fees. 

Despite a decline in advertising revenue, Musk remains optimistic that Twitter could achieve positive cash flow as early as this quarter. According to reports, the world’s second-richest person, who is also the CEO of Tesla Inc., believes that Twitter’s value has decreased by more than 50% since he acquired the company. The case, JF Associates LLC v X Corp, is being heard in the New York State Supreme Court, New York County.


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