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Lawsuits accuse Elon Musk's Twitter of owing more than $14 million in unpaid bills, report says

Feb 20, 2023, 19:23 IST
Business Insider
Twitter CEO Elon Musk appearing at a 2022 Tesla event.Suzanne Cordeiro/AFP via Getty Images
  • Several lawsuits concerning unpaid debts have been filed against Elon Musk's Twitter, per the WSJ.
  • Twitter is accused of owing more than $14 million, plus interest, the publication reported.
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At least nine lawsuits claiming more than $14 million, plus interest, over unpaid bills have been filed against Twitter, The Wall Street Journal reported.

Twitter has faced numerous lawsuits from vendors, landlords, and consultants since Elon Musk bought the platform in October. For example, marketing firm Canary LLC has accused Musk's company of failing to pay a $392,239 bill. Twitter also faces accusations of failing to pay the rent it owes for some of its offices.

The Journal reported that Canary LLC's court filings showed a purchase order for nearly $7,000 for a "swag gift box for Elon" ordered by Twitter's marketing team. The publication added that it couldn't be determined if the product was for Musk or if he received it.

In one of the nine lawsuits, the plaintiff sought dismissal and the case was closed Friday, per The Wall Street Journal.

Since completing his $44 billion acquisition of Twitter in October, Musk has been seeking to cut costs across the board. He has laid off thousands of employees, sold off old Twitter merchandise, and scaled back on employee perks such as free lunches.

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Earlier this month, Musk said his last three months were "extremely tough" because he had to "save Twitter from bankruptcy" and that the company was now "trending to breakeven if we keep at it." Musk had previously said Twitter was losing more than $4 million a day.

Representatives for Twitter did not immediately respond to Insider's request for comment made outside normal working hours.

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