Tuesday, February 21, 2023 – Twitter is facing a series of lawsuits with claims from landlords, consultants, and vendors piling up, all of whom are alleging bills have been left unpaid.
According to nine lawsuits seen by the Wall Street Journal, the complaints, total more than $14 million, plus interest.
They include a $7,000 bill issued by Twitter’s marketing department for a ‘swag gift box for Elon’ shortly before the $44 billion deal closed on October 27, with the vendor who provided the box still having not received payment.
The company’s court filings revealed the gift box contained a sandblasted logo on a Japanese whiskey bottle, an extra-large bomber jacket, and more than $250 worth of socks, among other items.
The lawsuits come as the social media company is attempting to cut costs since billionaire Elon Musk’s $44billion takeover.
Since taking over in October, Musk has implemented a number of significant changes at Twitter, which has a history of losing money. He publicly criticized the company’s spending, including $13 million per year on employee meals.
Although he initially suggested that Twitter could face bankruptcy due to losing over $4 million per day, Musk has recently stated that the company is now making progress toward breaking even.
Twitter is currently private and no longer publicly reports its financial details.
The company is facing at least three lawsuits related to office space, including allegations that it failed to pay nearly $6.8 million in rent for December and January at its San Francisco headquarters.
Last year it owed $239 million primarily for office space and data center facilities.
In a separate lawsuit, a marketing company claimed that Twitter owes almost $400,000 for company-branded merchandise.
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