Innisfree M&A Inc., a US advisory firm, has sued Twitter in New York State Supreme Court, seeking reimbursement of approximately $1.9 million for what it claims are outstanding bills after advising the social media company on its acquisition by Elon Musk in 2022.
According to the lawsuit, as of December 23, 2022, Twitter had failed to fulfill its obligations to Innisfree under the agreement. Neither Twitter nor a representative for Innisfree has commented on the matter. In 2022, Elon Musk successfully completed the $44 billion acquisition of Twitter and took the company private.
Additionally, last month, Britain’s Crown Estate, an autonomous commercial entity that manages the monarch’s property portfolio, announced that it had initiated court proceedings against Twitter for unpaid rent on its London headquarters.
An advertising research firm revealed that spending on advertisements for Twitter Inc plummeted by 71% in December, as leading advertisers decreased their investments in the platform following Elon Musk’s acquisition.
Last year, banks gave $13 billion in financing for Musk’s acquisition of Twitter, but due to the uncertain future and losses of the social media company, they decided against selling the debt to investors, as reported by Reuters last month.
Additionally, Reuters reported last month that Twitter made its first interest payment on the loan that banks provided to finance Musk’s purchase of the social media firm.