Elon Musk's X Sued Over $120 Million 💔
Elon Musk's X is once again entangled in legal issues, this time involving $120 million worth of unpaid IT bills. Taiwanese tech company Wiwynn has initiated a lawsuit against X, formerly known as Twitter, claiming that the company has failed to pay for approximately $120 million in server components following Musk's 2022 takeover.
The lawsuit, filed last week in the Northern District Court of California, asserts that X breached a 2014 purchasing agreement that required Twitter to procure custom IT products from Wiwynn. According to Wiwynn, Twitter stopped making payments for these products in November 2022, shortly after Musk assumed control of the company, and ignored the firm's requests for payment.
Wiwynn, which produces servers and storage systems for data centers and cloud services, claims it had accumulated $120 million worth of parts to fulfill Twitter's orders, assuming that Twitter was liable for the costs.
However, as Twitter began cutting back on staffing and cloud expenditures after Musk's takeover, the company allegedly refused to take responsibility for these actions or communicate with Wiwynn.The lawsuit states that Wiwynn managed to cancel or recover around $59 million of the components and is now seeking damages of $61 million from Musk's company.
This case adds to the growing list of legal challenges Musk is facing over his acquisition of X. These include lawsuits from former Twitter executives, like ex-CEO Parag Agrawal, who are suing for $128 million in unpaid severance, as well as other former Twitter staff members pursuing compensation for unpaid bonuses. Former Twitter chairman Omid Kordestani has also sued the company for $20 million in shares.
