Twitter is being hit with another lawsuit for non-payment of dues to its vendors. A marketing agency based in San Francisco, called Canary Marketing, is suing the micr0-blogging platform for $392,239.11, plus interest. According to a lawsuit filed on January 6, the agency alleges that Twitter breached its contract with the firm by not paying fees.
Canary Marketing, as per its website, designs, packages, and distributes branded merchandise for clients like Google, Slack, KFC, and Sephora. The company alleges that from June 2020 until August 2022, it provided goods and services to social media and that the company paid for those goods and services within 60 days of receipt of an invoice. However, since September 2022, nearly when Elon Musk acquired Twitter for $44 billion, Canary says its invoices stopped processing. “Twitter appears to interpret the [contract agreement] as allowing it to pay or not pay Canary invoices when Twitter decides to do so,” the suit reads.
Twitter is going through a financial crisis. Reports have it that soon after Musk purchased the social media platform, he asked his finance departments all over the world to stop paying vendors whose services the social media platform had been using. The company also stopped paying the rent for the various office spaces it occupies. In the past few months, the company has been hit with multiple lawsuits over accusations of non-payment of fees or rent including legal actions from its own staff.
Recently, Twitter employees were forced to walk out of its Singapore office because the company failed to pay the office rent. Tech analyst Casey Newton tweeted, “I’m told Twitter employees were just walked out of its Singapore office — its Asia-Pacific headquarters — over nonpayment of rent. Landlords walked employees out of the building.”
Previously, Musk owned company has been sued for not paying rent for an office space in San Francisco. As per a Bloomberg report, the land owner revealed that the social media giant was notified on December 16, 2022, that it would be in default on its lease for the 30th floor of the Hartford Building in five days unless the rent was paid.
