Twitter Faces Lawsuit Amidst Claims It Stopped Paying Rent

A San Francisco landlord filed a lawsuit towards Twitter, Inc. on Thursday, claiming the corporate is in breach of their rental settlement. The landlord, Columbia REIT-650 California LLC, claims Twitter owes $136,260 for lease at its 650 California Street workplace house, in response to the lawsuit.

Twitter signed a seven-year lease for the house in 2017, which is separate from its headquarters in San Francisco and is positioned within the metropolis’s monetary district. The landlord despatched Twitter a Notice of Default on December 16, warning the tech firm it had 5 days to reply and pay the quantity owed.

Twitter, which now not has a media communications division, didn’t instantly reply to Gizmodo’s request for remark.

Columbia REIT claims within the lawsuit that Twitter didn’t pay the required quantity within the allotted timeframe and is due to this fact in breach of the contract. A Columbia REIT spokesperson declined to touch upon the pending litigation.

The information comes as Twitter reportedly had not paid lease in weeks amidst mass layoffs and different price range cuts, The New York Times reported final month. Sources accustomed to the matter instructed The Times that Musk requested his group to renegotiate the phrases of the corporate’s lease agreements or just terminate them.

The outlet revealed Twitter had not paid lease to its San Francisco headquarters or every other world workplaces for weeks and closed its downtown Seattle workplace on Friday. Additionally, CEO Elon Musk lowered the workplace house from 4 flooring to 2 in its San Francisco headquarters, in response to The New York Times.

A separate lawsuit filed by Private Jet Services Group, LLC claims the corporate additionally didn’t pay a invoice for personal constitution flights amounting to $197,725 within the week of Musk’s Twitter takeover.

Musk acquired Twitter in October for $44 billion and two weeks after buying the tech firm, reportedly instructed staff that chapter was not “out of the question” if it didn’t make more cash, Bloomberg reported in November.

Since taking possession of the corporate, Musk has laid off greater than half of Twitter staff and has reduce on workers perks together with free meals and work journeys.

In an interview with George Holtz final month, Musk addressed Twitter’s funds evaluating it to a “plane that is headed towards the ground at high speed with the engines on fire and the controls don’t work.” He added, “That’s why I spent the last five weeks cutting costs like crazy.”