Elon Musk – Rent Will Be Paid “Over My Dead Body”

Elon Musk And Twitter Sued By Six Former Employees

On Tuesday, six former employees of Twitter filed a lawsuit against X. Corp, Twitter’s holding company, and its owner Elon Musk. The lawsuit, filed in the District Court of Delaware, claims that Twitter failed to pay severance to its staff.

The former employees also accuse their former employer of violating 14 counts including breach of contract, labor rights laws, and even fraud. The lawsuit also includes a statement from a former employee claiming that Twitter would stop paying rent on its properties.

Prior to this lawsuit by the employees, the company has been sued severally by landlords in San Francisco, New York City, and even London over the past few months. The lawsuits by the landlords claim that Twitter was failing to pay rent in the respective office spaces.

Joseph Killian, one of the six employees suing Musk, had worked at Twitter for 12 years overseeing office design for the company. Killian was told of Musk’s intention to stop paying rent by Venture Capitalist Pablo Mendoza who had invested with Musk.

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“Killian attempted to convince Musk, via Mendoza, of the danger of Musk’s new position that no rent would be paid whatsoever, pointing out that any attempt to renegotiate the terms of Twitter’s many leases would be doomed to failure,” the lawsuit said.

Another part of the lawsuit reads, “Elon told me he would only pay rent over his dead body.” According to Business Insider, Mendoza confirms this statement and alleges that the conversation took place at 4 a.m. on that same day.

Also mentioned was Mr. Musk’s attorney, Alex Spiro who spoke in support of his boss’s stance. According to the lawsuit, Mr. Spiro said it was unreasonable for Twitter’s landlords to expect the company to pay rent because San Francisco (Twitter’s headquarters), was a “sh*thole.”

This is a notion that can be backed by one of Musk’s recent tweets where he said San Francisco was “a derelict zombie apocalypse.”

Why Would Musk Intentionally Refuse To Pay Rent?

In an article published by the Wall Street Journal in February, the total money sought in all the Twitter lawsuits, by landlords and vendors alike, was $14 million at the time.

When a worried executive at the company expressed their worry about the unpaid bills, the tech mogul replied, “Let them sue.”

According to Stephen L. Carter, a Yale University professor of law, Musk’s decision to withhold payment is likely part of what is known as the “holdup game” among academic circles.

This is an opportunistic attempt to obtain better terms from a counterparty that is unable to oppose your demands.