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Elon Musk sues Watchell law firm that represented Twitter in locking him into the deal

Musk's Twitter is seeking to recover $90 million in legal fees that were awarded to the firm for its work in ensuring the transaction went through.
TJ Denzer
TJ Denzer
Image via Associated Press
2

Musk’s Twitter is lawyering up, this time against lawyers. Specifically, Musk’s legal team is suing the Wachtell, Lipton, Rosen & Katz law firm, which represented Twitter’s old owners in securing the $44 billion deal that saw the company sold to Musk. Elon and Twitter are seeking $90 million USD that was paid to the Watchell firm when it finished securing the transaction and finalizing the deal.

Elon Musk and Twitter’s lawsuit against the Wachtell, Lipton, Rosen & Katz law firm was reported via CNBC, with the lawsuit being officially file last week. Musk and company are seeking the $90 million that was paid to Watchell for facilitating the deal that saw Musk take Twitter private. Musk’s lawyers claimed in their lawsuit that the payment to Watchell was unwarranted and excessive, and demands “any associated excess fee payment,” as well as legal and attorney fees.

Twitter office with the logo on it.
Musk's Twitter is taking Watchell, Lipton, Rosen, & Katz to court for the $90 million the law firm was awarded for keeping Musk locked into the deal to buy the company.
Source: Reuters

Watchell was particularly responsible for keeping Elon Musk to the $44 billion deal to acquire Twitter after he attempted to pull out and renege on his offer. Ultimately, Watchell would be successful in court and Musk had no choice but to finish the acquisition. Since then, Musk has aggressively moved to recoup his losses, firing much of Twitter’s staff and even refusing to pay rent on certain office real estate.

There’s little doubt that Musk and Twitter are continuing to try to scrape up whatever money they can from his purchase of the company. Nonetheless, it will remain to be seen if the courts agree that Twitter’s payment to Watchell was egregious. Stay tuned as we follow this story for further updates.

Senior News Editor
Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

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