Last Friday, X Corp., Twitter’s parent company, sued the law firm of Wachtell, Lipton, Rosen & Katz, hired last year by former executives of the microblogging service to facilitate Elon Musk’s $44 billion purchase of Twitter . She attempted to back out of the deal, citing a misrepresentation of Twitter coverage as a basis for his position.
The lawsuit alleges that Wachtell, Lipton, Rosen & Katz exploited their client and is seeking $90 million in legal fees for only “several months” of providing services. “Fully aware that no one with a commercial interest in Twitter’s financial well-being was watching over the company, Wachtell made sure his pockets were efficiently lined with cash register funds while the keys were handed over to Musk . says the document.
According to the lawsuit, the law firm issued a “contingency fee” of $84.3 million and an hourly bill of $16 million for Twitter’s help in closing the deal with Musk. The amount of the fee came as a shock to former Twitter CEO and board member Martha Lane Fox, who succinctly wrote in an email after receiving a copy of the bill: “oh God“.
“Despite the initial shock, Twitter board members voted to approve Wachtell’s inflated and dishonest pay.” says the complaint. According to the document, just minutes before the deal was signed, $84 million was transferred to the law firm. “Wachtell boasts about how many former Delaware judges work for the firm. They specialize in institutionalized corruption.” — written down Musk on Twitter.