Trouble: Elon Musk’s Twitter faces lawsuits claiming nearly $14 million in unpaid bills

AccordinG TO a Recent report by marketswatch, Elon Musk’s Twitter faces lawsuits claiming nearly $14 million in unpaid bills

KEY TAKEAWAYS

• Since Elon Musk took over, Twitter Inc. has faced a growing list of claims that it hasn’t paid its bills as the social-media company aims to break even this year.
• Landlords, consultants and vendors in recent months have made demands for payments in at least nine lawsuits, with their complaints totaling more than $14 million plus interest.
• Among those alleging past-due notices is an invoice of almost $7,000 for a “swag gift box for Elon” ordered by Twitter’s marketing department in the days before the $44 billion deal closed on Oct. 27.

In one of the nine lawsuits, the plaintiff sought dismissal and the case closed Friday.

Musk inherited the bills when he took control more than three months ago and quickly implemented a more austere spending style as part of his signature intensity.

His career before Twitter has included navigating close brushes with financial doom, including Tesla Inc. TSLA, +3.10% nearly running out of money. He has managed past financial challenges partly by pressuring suppliers and vendors when conserving cash was paramount.

“What Elon Musk is doing is basically simulating a bankruptcy,” said Van Conway, a restructuring expert who has helped distressed companies for almost 40 years. “He is taking a machete to his costs.”