Twitter has been trying to look for ways to earn more from its platform since Elon Musk acquired it, and it seems that the company has managed to steer clear of bankruptcy. So, it does make you wonder why they stopped paying rent for their headquarters, which led to Twitter being sued.
Yet Another Legal Action Against Twitter
Twitter is no stranger to legal troubles especially since Musk bought the company, so it doesn't make sense that managed to get sued for something manageable like paying its rent. Twitter is currently facing two lawsuits from two different landlords.
The UK's Crown Estate is one of the entities suing Twitter for not providing what is due for its headquarters. The property near Piccadilly Circus where Twitter does its operations in London is owned by the British monarch, according to Gizmodo.
The Crown Estate tried to contact Twitter first about its unpaid rental debts, but the company was not responding. This left the Estate to proceed with legal action last week. There are no reports as to how much Twitter owes.
It appears that the company has made a habit of doing this since they are facing a similar situation at its San Francisco headquarters. The summons states that the court may decide against Twitter if they did not respond within 30 days.
Twitter has to file a written response at the court and have a copy sent to the plaintiff as well. It also mentions that the written response should be in proper legal form for the court to hear the case, as mentioned in the case file.
In the event that Twitter does not respond in time, it will lose the case by default. The company may also have its wages, money, and property taken without notice from the court. It also says that there are other legal requirements for the case which may require a lawyer.
What's Going On, Twitter?
Reports say that the failure to pay rent is part of the company's cost-cutting efforts, which now seems counterproductive seeing as they will have to pay for legal fees. This has already been going on for weeks, according to three people who are close to the company.
Other than rent, Twitter has also been ignoring an outstanding bill of $197,725, which is for private charter flights that happened the week Musk took over Twitter. The debt was mentioned in a lawsuit filed in New Hampshire District Court, according to The New York Times.
There's also the issue of cost-cutting affecting the severance packages of employees that were laid off. Musk even threatened the former employees with lawsuits via internal email if they involve the media or act in any manner that is "contrary to the company's interest."
It's not a mystery why Twitter has been making unwise decisions, seeing as Musk disbanded a council that advised the company about its issues. Twitter's legal department has one less adviser after Musk's workforce "restructuring."
