Staff Reports
Get ready to grab your popcorn, folks, because Elon Musk is taking on Twitter’s former law firm in a juicy lawsuit. According to a Complaint filed by X Corp., the parent company of Musk, Twitter’s law firm, Wachtell, Lipson, Rosen & Katz, allegedly breached its fiduciary duty by billing the company a whopping $90 million. And get this, that’s not even the best part. The firm apparently negotiated a “winner’s fee” for themselves, which amounted to six times what they had already billed in hourly fees. Talk about greedy!
Pull out the Popcorn, Musk Sues Twitter's Former Law Firm Which Billed (and Got) 90 Million Dollars Hours Before the Takeover https://t.co/0w1pLqG1PB
— RedState (@RedState) July 10, 2023
But the plot thickens. It seems that Twitter’s chief legal officer, Vijaya Gadde, who was promptly fired by Musk, may have had a role in this scandalous affair. The Complaint suggests that she sought revenge by ensuring her former colleagues at Wachtell walked away with a “gargantuan” payout. Gadde and her team presented an unnecessary “letter agreement” to the outgoing board, even though there was no obligation to do so. One board member’s reaction? “O My Freaking God!” I couldn’t have said it better myself.
It’s clear that Wachtell was playing some shady games here. They touted their association with former Delaware Supreme Court Justice Leo Strine to win the business, and once engaged, they went to work. However, it seems they conveniently forgot to mention what they were actually billing for in their invoices. Some entries were completely blank, while others had vague descriptions like “strategy.” One attorney, Alexandra Sadinsky, billed over $100k for “strategy” alone. Talk about a job well done!
As if that wasn’t enough, Wachtell managed to negotiate a winner’s fee without even specifying the amount. It’s almost like they were making it up as they went along. And to top it all off, Twitter’s legacy board approved the exorbitant payment of $84 million just hours before the merger completed. When the new owner of Twitter questioned the payment, Wachtell responded with a single page from their 99-page invoice. It seems they were trying to hide their tracks.
Well, Musk has had enough of these shenanigans and is suing Wachtell for everything they’ve got. He’s seeking disgorgement of the fees they collected, as well as attorney fees. And who can blame him? This kind of blatant disregard for fiduciary duty and ethical behavior should not go unpunished. It’s time for Wachtell to face the music and learn their lesson.
It’s stories like these that remind us why we must always be vigilant against the corruption and greed that permeates our society. The elites may think they can get away with their schemes, but they will always be held accountable by those who fight for truth and justice. Bravo, Elon Musk, for standing up against the establishment and fighting for what’s right. We’re all eagerly awaiting the outcome of this legal drama. Pass the popcorn!
