Twitter is being sued for almost $400,000 by a marketing company after being accused of not paying its fees

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Twitter is being sued by San Francisco-based Canary Marketing.Muhammed Selim Korkutata/Getty Images

  • Twitter is being sued for $392,239 after being accused by a marketing firm of not paying its fees.

  • The San Francisco-based agency said it had been providing merchandise to Twitter since June 2020.

  • Elon Musk is trying to cut costs at Twitter and has reportedly left some bills unpaid.

Twitter is being sued again after being accused of not paying money it owes vendors.

Canary Marketing, an agency based in San Francisco, is suing Twitter for $392,239.11, plus interest, for breaching its contract with the firm by not paying fees, according to a lawsuit filed on January 6.

The company describes itself in the lawsuit as a multifaceted marketing agency. On its website, it states that it designs, packages, and distributes branded merchandise for clients like Google, Slack, KFC, and Sephora.

According to the suit, Canary Marketing provided merchandise to Twitter from June 2020 until August 2022 under an agreement that Twitter would pay for its services within 60 days of receiving an invoice.

From September 2022, however, the lawsuit alleging that Canary Marketing’s invoices were not processed. At the time of filing the lawsuit, a further two invoices remained unpaid, it was alleged.

“Twitter appears to interpret the MSA [contract agreement] as allowing it to pay or not pay Canary invoices when Twitter decides to do so,” the lawsuit alleged.

Twitter and Canary Marketing did not immediately respond to Insider’s request for comment outside of normal business hours.

In recent months, Twitter has been hit with several lawsuits over accusations of unpaid fees or rent. It is also facing legal action from its own staff.

Musk has been desperately trying to cut costs at Twitter since his first week as CEO when he laid off roughly half of the company’s 8,000 employees. Layoffs have continued through the new year as Musk continues to explore new avenues of cutting costs. One such plan included closing down smaller offices outside its major hubs in California, New York, and London.

Musk reportedly stopped paying rent on its offices, including its headquarters in San Francisco, and informed employees to stop paying some of its vendors, per a report by the New York Times. He also considered not paying severance packages that were promised to laid-off staff, per a separate report by the New York Times.

Most recently, Insider’s Kali Hays reported that Twitter had not paid rent for a major office in Singapore, though he later paid the past due payment, per source.

Other cost-cutting measures include refusing to cover employees’ work expenses, and auctioning off work furniture and kitchen equipment.

Read the original article on Business Insider

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