Elon Musk's X in Legal Hot Water: A $120 Million Server Parts Lawsuit Unfolds

Monday, 19 August 2024, 08:54

Tech challenges continue as Elon Musk's X is facing a $120 million lawsuit concerning server parts. The action, driven by Taiwanese tech firm Wiwynn, claims Musk's company owes $61 million. This adds to the myriad of troubles following Musk's acquisition of Twitter, highlighting ongoing financial disputes and potential legal ramifications.
Business Insider
Elon Musk's X in Legal Hot Water: A $120 Million Server Parts Lawsuit Unfolds

The Legal Challenge Faced by Elon Musk's Tech Venture

Elon Musk's X, previously known as Twitter, is embroiled in a significant legal issue with Taiwanese tech company Wiwynn, which alleges that the social media giant owes $61 million for server parts.

Details of the Lawsuit

According to the lawsuit, filed in the Northern District Court of California, Wiwynn claims that Musk's company has violated a 2014 purchasing agreement for custom IT products valued at approximately $120 million. The complaint suggests that these issues emerged shortly after Musk's acquisition in 2022, intensifying the scrutiny on his management of the platform.

Ongoing Legal Struggles for Musk

This lawsuit is only a fragment of the broader legal challenges Musk faces, with multiple former executives pursuing claims regarding millions in unpaid severance. As the situation unfolds, industry observers are keenly watching the legal ramifications for X in the tech landscape.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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