By Emmanuel Ogbodo<\/p>\n
X Corp, the company formerly known as Twitter and owned by Elon Musk, is facing a $61 million lawsuit from Taiwanese IT infrastructure provider Wiwynn over unpaid technology costs. Wiwynn, which specialises in cloud infrastructure for large-scale data centres, claims that X Corp failed to pay for $120 million worth of components it had procured on behalf of the social media company.<\/p>\n
The dispute centres around a “Master Purchase Agreement” between X Corp and Wiwynn, established in September 2014. Under this agreement, X Corp would forecast its infrastructure needs, and Wiwynn would procure the necessary components with X Corp’s approval. This arrangement reportedly worked smoothly for eight years, with X Corp consistently paying for the equipment.<\/p>\n
However, after Musk acquired the social media platform in 2022, Wiwynn alleges that X Corp abruptly stopped making payments in November of that year, leaving $61 million still owed. Despite Wiwynn’s efforts to communicate and resolve the issue, X Corp has reportedly refused to accept responsibility for the unpaid components.<\/p>\n
Wiwynn managed to cancel $40 million worth of undelivered components and recoup another $19 million through reselling, but the company is still facing significant financial loss due to the custom nature of the remaining equipment and the costs associated with storing them.<\/p>\n
As a result, Wiwynn has filed a breach of contract lawsuit in the California Northern District Court, seeking a jury trial and damages of at least $61 million, plus interest.<\/p>\n
This lawsuit is just one of several legal challenges X Corp is currently facing. The company is also involved in disputes over unpaid stock options and compensation for unfair dismissal of a former senior executive in Ireland.<\/p>\n
X Corp has not yet provided a detailed response to the lawsuit, only stating, “Busy now, please check back later.”<\/p>\n","protected":false},"excerpt":{"rendered":"
By Emmanuel Ogbodo X Corp, the company formerly known as Twitter and owned by Elon Musk, is facing a $61 million lawsuit from Taiwanese IT infrastructure provider Wiwynn over unpaid technology costs. Wiwynn, which specialises in cloud infrastructure for large-scale data centres, claims that X Corp failed to pay for $120 million worth of components […]<\/p>\n","protected":false},"author":2,"featured_media":43938,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-44418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/44418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=44418"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/44418\/revisions"}],"predecessor-version":[{"id":44419,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/44418\/revisions\/44419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/43938"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=44418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=44418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=44418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}