US consulting firm Innisfree M&A Incorporated sued Twitter in New York State Supreme Court on Friday, seeking about $1.9 million for what it says are unpaid bills after advising the social media company on its acquisition by Elon Musk last year.
The lawsuit states “As of December 23, 2022, Twitter remains in default of at least $1,902,788.03 in its obligations to Innisfree under the agreement,”.
Twitter and a lawyer for Innisfree did not immediately respond to a request for comment. In October, Musk closed on the $44 billion deal announced in April of that year and took Twitter private.
Britain’s Crown Estate, an independent commercial company that manages a property portfolio belonging to the monarchy, said last month it had launched legal proceedings against Twitter over alleged unpaid rent at its London headquarters.
Advertising spending on Twitter fell 71% in December, data from an ad research firm showed, as top advertisers cut spending on the social media platform following Musk’s takeover.
Banks that provided $13 billion in financing for the Tesla CEO’s acquisition of Twitter last year have abandoned plans to sell debt to investors amid uncertainty over the social media company’s fortunes and losses, Reuters reported last month. Twitter made its first interest payment on a loan that banks made to help finance Musk’s purchase of the social media company last year.
