Elon Musk’s legal troubles continue to mount higher, now with the eccentric CEO’s cost-cutting measures at Twitter including a refusal to pay bills.
From soon after agreeing to buy the social media company in April 2022, Musk has been sued multiple times, by shareholders and Twitter itself — even before the agreement was even finalized later last year after Musk attempted to back out of the deal.
Since October, when Musk officially took over the company, Twitter’s legal woes have continued and as of mid-February, there were nine lawsuits filed against Twitter amounting to over $14 million, according to The Street.
On Tuesday, it was reported Twitter is being sued again, this time by four vendors who allege they haven’t been paid for services they were contracted to do. The class action lawsuit is for unpaid bills that range from $40,000 to $140,000, according to CNN.
What’s More: The four vendors, White Coat Captioning, YES Consulting, Cancomm and Dialogue México, aren’t the only companies who say they are owed money. Multiple former employees, business partners and one of Twitter’s landlords accuse Twitter of failing to pay money that is owed to them since Musk purchased the social media company for $44 billion.
It’s possible Twitter can’t afford to pay its bills. After all, the last time the public was able to view the company’s financial report, which was for the second quarter of 2022 before Musk took the company private, Twitter posted a net loss of $270 million.
Musk has attempted to monetize some features of Twitter, such as the blue checkmark, in order to increase Twitter's revenues.
Read Next: Musk Tells Schumer On Trump: Important That Justice System Pursue Both Parties With ‘Equal Vigor’
Photos: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
