“As of December 23, 2022, Twitter remains in default of its obligations to Innisfree under the agreement in an amount of not less than $1,902,788.03,” the lawsuit says.
The blockbuster technology deal that every adviser on Wall Street clamored to be a part of has proved not to have been so lucrative for at least one advisory firm that worked on it.
Innisfree’s lawsuit is the latest sign that Twitter has stopped paying some of its vendors, advisers and other service providers since Musk took over the company. Twitter took on a large amount of debt for the deal, which it must repay along with interest payments, even as it has also grappled with sliding sales. So to make the company’s finances work, Musk has slashed costs.
Musk has also avoided making payments to some of Twitter’s former executives, who were set to receive multimillion-dollar payouts when he fired them. And the severance offered to laid-off employees was lower than what had been promised by Twitter’s previous management team, prompting suits by many of those former employees.
In its lawsuit, Innisfree says it first sent an invoice to Twitter around Sept. 26. Around Oct. 28, Twitter said the invoice had been “successfully processed.” When Innisfree did not receive payment, it followed up twice in December, the complaint says. The advisory firm, through its lawyer, sent a letter to Twitter on Dec. 23 demanding payment but has not heard back from the company.
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