A consulting firm is suing Twitter, saying it is owed over $2 million for work it did trying to force through Elon Musk's acquisition
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- Consulting group Charles River Associates is suing Twitter.
- The firm claims it is owed over $2 million for work it did related to forcing through Elon Musk's acquisition.
- Musk had tried to pull out of the deal but eventually went through with it in October.
Twitter is facing a lawsuit from a consulting firm which claims it is owed $2 million for work it did to help force through Elon Musk's takeover.
Musk first announced plans to buy Twitter in April 2022, before he tried to pull out of the deal three months later. The social-media company began legal proceedings, before the world's second-richest person changed his mind again and bought Twitter for $44 billion in October.
Charles River Associates brought the suit against Twitter in a Massachusetts state court on Thursday, which was first reported by Bloomberg.
In court documents reviewed by Insider, the lawsuit says: "In connection with the Musk Litigation, Twitter's legal team requested CRA to provide expert consulting services to Twitter."
The companies entered into an agreement in August 2022, and CRA began preliminary work on the materials, court documents say. Twitter's trial against Musk stopped after he went ahead with the acquisition, but now CRA is looking for the money it says it says it is still owed.
In the lawsuit, CRA says it sent four invoices to Twitter between September and November 2022 for work totalling $2.19 million, but the social-media company stopped replying to its emails.
The companies' contract says the invoices gain 1.5% interest each month, and Twitter hasn't objected to any of the invoices, per the lawsuit.
When contacted by Insider, Charles River Associates said it could not comment on pending litigation.
The suit is the latest to be brought against Twitter in recent months, with the company already being sued by a private jet company for an unpaid $197,725 bill. Laid-off employees yet to receive their three months of severance pay were last week ordered to file individual arbitration claims instead of a class-action lawsuit.
The company has cut costs by slashing staff numbers and withholding rent payments, with at at least a dozen offices closing down, per Insider's Kali Hays. As soon as this month, Twitter is set to start paying back interest on the $13 billion of loans taken out to finance Musk's takeover.
Twitter did not immediately respond to Insider's request for comment.