Elon Musk has been sued again. I guess he likes being sued or something. In any case he’s being sued for stiffing a company named Wiwynn for stiffing them for $120 million in server parts:
Taiwanese tech firm Wiwynn is suing the social media giant formerly known as Twitter for $61 million over claims it refused to pay for around $120 million in server parts after Musk took over in 2022.
It adds to the avalanche of lawsuits Musk is still facing over his takeover of X, with numerous former executives also suing the billionaire over millions in unpaid severance.
According to the complaint, filed in the Northern District Court of California last week, Wiwynn claims the company violated a 2014 purchasing agreement to provide Twitter with custom IT products.
The Taiwanese firm says that in November 2022, shortly after Musk dramatically took over the social media giant, Twitter “abruptly stopped” making any payments to Wiwynn and failed to respond to Wiwynn’s request for payment for completed products.
The complaint also says that Wiwynn, which makes servers and storage systems for data centers and cloud providers, had amassed $120 million worth of parts to fulfill Twitter’s existing orders, under the assumption that Twitter had taken liability for them.
You have to wonder why Elon thinks that being continuously sued is a great business strategy. The legal bills alone must be insanely expensive. And factoring in the fact that Twitter is bleeding cash and Elon is likely going to sell Tesla stock to finance Twitter, this seems like a #fail from a strategy perspective. But Elon isn’t known for being smart. Thus I guess that he’s okay with this.
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This entry was posted on August 25, 2024 at 8:24 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed.
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Elon Musk Gets Sued For Stiffing Server Company Over Server Parts
Elon Musk has been sued again. I guess he likes being sued or something. In any case he’s being sued for stiffing a company named Wiwynn for stiffing them for $120 million in server parts:
Taiwanese tech firm Wiwynn is suing the social media giant formerly known as Twitter for $61 million over claims it refused to pay for around $120 million in server parts after Musk took over in 2022.
It adds to the avalanche of lawsuits Musk is still facing over his takeover of X, with numerous former executives also suing the billionaire over millions in unpaid severance.
According to the complaint, filed in the Northern District Court of California last week, Wiwynn claims the company violated a 2014 purchasing agreement to provide Twitter with custom IT products.
The Taiwanese firm says that in November 2022, shortly after Musk dramatically took over the social media giant, Twitter “abruptly stopped” making any payments to Wiwynn and failed to respond to Wiwynn’s request for payment for completed products.
The complaint also says that Wiwynn, which makes servers and storage systems for data centers and cloud providers, had amassed $120 million worth of parts to fulfill Twitter’s existing orders, under the assumption that Twitter had taken liability for them.
You have to wonder why Elon thinks that being continuously sued is a great business strategy. The legal bills alone must be insanely expensive. And factoring in the fact that Twitter is bleeding cash and Elon is likely going to sell Tesla stock to finance Twitter, this seems like a #fail from a strategy perspective. But Elon isn’t known for being smart. Thus I guess that he’s okay with this.
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This entry was posted on August 25, 2024 at 8:24 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.