Elon Musk Files Lawsuit Against Law Firm Responsible for Initiating Twitter Takeover – Demanding $90 Million in Damages

**Elon Musk Sues Law Firm Over Twitter Takeover Fight**

Elon Musk, the CEO of X Corp. and now the parent company of Twitter, has filed a lawsuit against Wachtell Lipton Rosen & Katz, the law firm that led the court battle to make him complete his takeover of Twitter. Musk alleges that the firm took advantage of the company and accumulated a massive $90 million legal bill during a vulnerable period in the acquisition process.

**Exploitation by Wachtell Lipton Rosen & Katz**

According to the complaint filed by X Corp. in San Francisco state court, Wachtell Lipton Rosen & Katz, one of the most profitable law firms in the US, exploited a brief and vulnerable period just as Musk was finalizing the $44 billion deal to acquire Twitter. The lawsuit claims that the law firm violated ethical duties and California law during the final days of its four-month representation by soliciting exorbitant bonus fees, beyond what was agreed upon, from Twitter.

**Role Reversal for Musk**

This lawsuit marks a role reversal for Musk, who is typically a defendant in multiple legal cases against Twitter. These lawsuits allege that under Musk’s leadership, Twitter allowed millions of dollars in unpaid expenses from former employees, vendors, and landlords to accumulate while purportedly trying to maintain the company’s financial stability.

**No Immediate Response from Wachtell Lipton Rosen & Katz**

Representatives of Wachtell Lipton Rosen & Katz, including William Savitt, did not immediately respond to a request for comment regarding the lawsuit. Savitt played a lead role in last year’s Delaware Chancery Court fight related to the Twitter takeover.

**Massive Legal Fees in Twitter Takeover Battle**

The legal battle between Twitter and Musk involved the engagement of dozens of lawyers on both sides, some charging hourly rates of over $1,000. Columbia University law professor John Coffee speculates that the total legal fees could have exceeded $1 billion if the case had gone to trial.

**Accusations against Wachtell Lipton Rosen & Katz**

X Corp. alleges that Wachtell Lipton Rosen & Katz arranged for Twitter to pay the law firm on an hourly basis, rather than taking the case on a contingency basis. This arrangement allowed the firm to avoid any financial risk while still charging hefty fees. The lawsuit also points out that the agreement between the law firm and Twitter did not specify the amount of the success fee or the formula used to calculate it.

**Lame Duck Executives and Legal Spending Spree**

The lawsuit further accuses “lame duck” executives at Twitter of going on a legal “spending spree” before Musk took control of the company. The complaint suggests that, knowing there was no one with an economic interest in the company’s financial well-being overseeing the expenditures, Wachtell Lipton Rosen & Katz took advantage of the situation and lined their pockets at the expense of Twitter.

**Conclusion and Implications**

The ongoing legal battle between Elon Musk’s X Corp. and law firm Wachtell Lipton Rosen & Katz sheds light on the complexities and potentially exploitative nature of high-stakes corporate acquisitions. The lawsuit seeks to hold the law firm accountable for alleged ethical violations and exorbitant fees while highlighting the alleged negligence of Twitter’s former executives. The outcome of this case could have significant implications for the legal profession and future mergers and acquisitions.