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The Street
The Street
Colette Bennett

Elon Musk Has a Troubling New Lawsuit on His Hands

To say that billionaire Elon Musk has made a lot of dramatic changes since his purchase of Twitter (TWTR) in 2022 might be the understatement of the year.

While many of Musk's choices since taking over the social media website have drawn nothing more than criticism, he's started to rack up a few lawsuits -- and now he has a new one to contend with.

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Four Twitter vendors filed a class action lawsuit against the company in U.S. District Court for the Northern District of California on April 4, alleging that they are owed tens of thousands of dollars in overdue bills that have yet to be paid, CNN originally reported.

The lawsuit involves White Coat Captioning, a captioning service, consulting company Yes Consulting, and PR firms Cancomm and Dialogue Mexico. All say they did work for Twitter in 2022.

While the amounts are trivial by Musk's standards, they aren't for the companies that are owed money. Many companies that did work for Twitter prior to Musk's takeover have apparently gone unpaid. Musk has previously adopted a laissez-faire attitude towards the problem, saying "let them sue," according to a former senior staff member, Financial Times reported in mid-March.

Twitter had nine lawsuits filed against it as of mid-February with a total of more than $14 million owed. 

Musk famously fired the majority of Twitter's media relations team after taking over the social media platform in 2022, setting up a poop emoji to auto-reply to PR inquiries. TheStreet reached out to Twitter for comment on the new lawsuit and got exactly that.

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