Musk's X Company Faces Multiple Lawsuits, Including from Wiwynn for $61M Debt

TapTechNews August 21st news, Musk's social media platform X company (formerly known as Twitter) is once again facing legal disputes. Taiwan region's tech company Wiwynn has recently filed a lawsuit in the Northern District of California federal court, demanding that X company pay a debt of 61 million US dollars (TapTechNews note: currently about 435 million yuan).

This is just one of the many lawsuits that Musk has faced since taking over X company. Previously, many former X company executives also sued Musk for the company's failure to pay millions of US dollars in severance pay.

According to the complaint, Wiwynn claims that X company violated the procurement agreement signed in 2014, which stipulates that Wiwynn provides custom IT products for X company. Wiwynn said that shortly after Musk's dramatic takeover of X company, X company'suddenly stopped' paying Wiwynn and failed to respond to Wiwynn's payment request.

The complaint also stated that Wiwynn has accumulated components worth 120 million US dollars to meet X company's orders. However, X company began to cut staff and cloud computing expenditures shortly after Musk took over and refused to fulfill its responsibilities or respond to Wiwynn's communication attempts.

The complaint stated that Wiwynn has cancelled or recovered about 59 million US dollars of components and is currently suing Musk's company, demanding compensation for the remaining 61 million US dollars.

In addition to Wiwynn's lawsuit, Musk is also facing lawsuits from many former Twitter executives, including former CEO Parag Agrawal, who are demanding payment of 128 million US dollars in unpaid severance pay.

X company has also been sued by former Twitter chairman Omid Kordestani, demanding compensation for 20 million US dollars in stocks and unpaid bonuses for other former Twitter employees.