Tech
Twitter US HQ & UK Office Face Litigation Over Unpaid Rent
(CTN NEWS) – LONDON – The latest indication that owner Elon Musk‘s extreme cost-cutting policy involves not paying the bills is that more landlords are bringing Twitter to court over unpaid rent.
This time at the social media headquarters office in San Fran and its British offices.
According to court filings filed in California, Twitter is being sued over claims that it did not pay the rent for its corporate headquarters.
Meanwhile, the central London property’s owner announced that it is suing the business for unpaid rent.
Musk is cutting expenses after his $44 billion acquisition of Twitter last year left the company liable for roughly $1 billion in interest payments yearly.
Documents related to the class-action lawsuit on behalf of investors who owned Tesla stock in August 2018 are carried toward a federal courthouse in San Francisco, Friday, Jan. 20, 2023. (AP Photo/Jeff Chiu)
For failing to pay the rent at another San Francisco office, Twitter has already been sued this month.
The lawsuit is a separate class-action lawsuit brought by Tesla investors who claim Musk’s tweet from 2017 misled them about funds to take the electric carmaker private. Musk has been testifying in the case recently.
The crew Twitter was eliminated as part of the billionaire Tesla CEO’s cost-cutting plan, which also involved auctioning off expensive office furniture and memorabilia.
An inquiry for feedback from Twitter received no response. After Musk’s acquisition, it shut down its communications division.
According to paperwork submitted on Friday with the Superior Court of California, Twitter is being sued by the owner of the building where its San Francisco offices are located at 1355 Market St. for failing to pay the most recent installment of rent.
READ MORE: Elon Musk Testifies To Defend Tesla 2018 Buyout Tweets
Alex Spiro, attorney for Elon Musk, arrives at a federal courthouse in San Francisco Friday, Jan. 20, 2023. (AP Photo/Jeff Chiu)
Twitter “breached the Lease by failing to pay monthly rent and additional rent,” totaling $3.4 million for January, according to the business, Sri Nine Market Square LLC.
According to the petition, Twitter, which has had a lease for three floors in the building since 2011, fell behind in rent in December by a comparable sum, which Sri Nine Market Square was able to collect thanks to a letter of credit that Twitter had provided as a security deposit.
The landlord claims Twitter still owes $3.16 million in unpaid rent after spending that money and is pursuing late fines, interest, and attorney’s costs.
According to the landlord, the social media corporation still resides on the grounds.
After Twitter missed rent payments at its headquarters close to Piccadilly Circus in London, the Crown Estate filed legal action against the firm there.
Harvard professor Guhan Subramanian arrives at a federal courthouse in San Francisco Friday, Jan. 20, 2023. (AP Photo/Jeff Chiu)
The Crown Estate, which owns some of the most expensive properties in central London, claimed it took action after speaking with Twitter about the overdue rent and is in talks with the business but gave no other details.
The Windsor estate and a large portion of London’s Regent Street are part of the enormous property portfolio known as The Crown Estate.
It is a privately owned and operated business, but the Sovereign Grant—public cash used to support the official activities of the British royal family—is funded using its revenues as a benchmark.
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