Elon Musk Claims $90 Million Overcharge From Twitter Law Firm When Company Changed Hands – Deadline

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Elon Musk’s lawyers have filed a lawsuit against the law firm that represented Twitter when Musk tried to buy the company last year, claiming an overcharge when the company transitioned to new ownership.

Wachtell, Lipton, Rosen & Katz, which was Twitter’s firm before Musk’s acquisition, racked up a $90 million legal bill at the “last minute,” the lawsuit alleges.

“Fully aware that no one with a financial interest in Twitter’s financial well-being was minding the store, Wachtell effectively arranged to line his pockets with money from the company’s coffers while the keys were handed over to the Musk parties,” Musk’s lawsuit says. .

Wachtell represented Twitter after Musk tried to withdraw his initial offer to take Twitter private for $44 billion. The deal eventually closed in November 2022, with Wachtell receiving a $90 million fee for his work.

X Corp., Twitter’s holding company, is seeking reimbursement of “any associated excess royalty payments” and attorneys’ fees related to the costs of litigation. Musk’s company is represented by Reid Collins & Tsai, a litigation shop based in Austin, Texas.

Attorneys at Reid Collins and Wachtell have not commented publicly on the lawsuit.