According to news on January 13, Canary Marketing, a marketing company headquartered in San Francisco, USA, filed a lawsuit on January 6 that the social media company Twitter violated the contract and failed to pay for the service as required, so it claimed USD 392,239.11 (approx. RMB 2643220.91) (including interest).
Canary Marketing describes itself in the lawsuit as a multi-party marketing agency. According to the company’s official website, Canary Marketing designs, packages and distributes branded goods for clients such as Google, Slack, KFC and Sephora.
According to the lawsuit, Canary Marketing provided merchandise to Twitter between June 2020 and August 2022. The contract stipulates that Twitter will pay for the service within 60 days of receiving the invoice.
But the invoices issued by Canary Marketing were not processed from September 2022 onwards, the lawsuit said. At the time of the lawsuit, Twitter had not paid for two other invoices, the company said.
“Twitter appears to be interpreting the agreement as saying it has the right to decide whether to pay Canary Marketing’s invoices,” the lawsuit said.
Twitter has been hit with multiple lawsuits in recent months for unpaid fees or rent, and the company faces legal action from employees.
Elon Musk has been on a cost-cutting spree since becoming Twitter’s chief executive, laying off about half of the company’s workforce in his first week on the job. In the new year, ELon Musk continued to explore how to cut operating costs, and the company’s layoffs continued. It is reported that Twitter’s new plan also includes the closure of smaller offices outside the main offices in California, New York and London.
According to reports, Elon Musk has stopped paying rent for offices, including the San Francisco headquarters, and told employees to stop paying some suppliers. According to another report, he is also considering not paying promised severance packages to fired employees.
It was recently reported that Twitter was in arrears on rent for a major office space in Singapore, although sources said the company has since paid overdue rent.
Twitter’s other cost-cutting measures include refusing to pay employees for their work and auctioning off office furniture and kitchen equipment.