Elon Musk’s X dismisses $90 million lawsuit against Wachtell
Elon Musk’s social media platform X has officially ended its lawsuit against elite law firm Wachtell, Lipton, Rosen & Katz, which sought to recover the majority of a $90 million fee the firm received for helping Twitter resist Musk’s attempt to back out of his multibillion-dollar acquisition.
X filed a notice in a California state court on Wednesday, dismissing the case with prejudice, meaning it cannot be refiled. The reasons for the dismissal were not disclosed. A Wachtell spokesperson said the firm was “pleased that X has dismissed its meritless lawsuit with prejudice” and emphasized that no settlement was involved, News.Az reports, citing Reuters.
The lawsuit, filed in 2023, alleged that Wachtell received an “improper bonus payment” in violation of its fiduciary and ethical obligations during the Twitter acquisition. Musk claimed Twitter executives had artificially inflated fees to law firms by labeling them as “success” or “project” payments. Wachtell, known for high-profile Wall Street transactions, denied any wrongdoing and argued that the board had approved the fees, which ensured billions in value for Twitter stockholders.
Previously, a judge had ruled that the dispute should be resolved through private arbitration, and X and Wachtell were scheduled to provide an update in December.
The lawsuit is the latest chapter in Musk’s post-acquisition overhaul of Twitter, which he rebranded as X in 2022 following the multibillion-dollar deal.
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