This text discusses Elon Musk's lawsuit against the law firm Wachtel Lipton Rosen and Katz over a $90 million success fee they charged Twitter in a merger and acquisition deal where Musk acquired Twitter. Musk claims that this fee was unjust enrichment because the law firm's work had already been done when they switched from an hourly billing arrangement to a success fee structure. Musk argues that this switch lacked proper consideration and was unconscionable.
On the other hand, Wachtel might defend itself by suggesting that they were negotiating new terms for comprehensive fees, covering both litigation and advisory services, and that they were compensated for their role in advising Twitter during the closing of the deal.
Ultimately, this lawsuit revolves around contractual disputes and considerations in mergers and acquisitions, and it remains to be seen how the legal proceedings will unfold.
Here are the key facts extracted from the text:
1. Elon Musk bought Twitter for $44 billion.
2. Elon Musk is suing the law firm Wachtel Lipton Rosen and Katz for charging Twitter $90 million in success fees.
3. Musk claims that the success fee is unjust enrichment.
4. The engagement letter between Twitter and Wachtel did not initially specify a success fee.
5. Musk argues that the work performed by Wachtel was not particularly difficult or novel.
6. Musk's law firm also charges success fees in mergers and acquisitions.
7. Success fees are common in mergers and acquisitions, ranging from 67% to 100% of investment banking fees.
8. Musk argues that the success fee was improper as the work had already been done.
9. Consideration in contract law requires an exchange of something between parties.
10. The original fee agreement with Twitter was based on hourly billing.
These facts provide a clear overview of the situation without including opinions.