Elon Musk X is being sued for $61 million in debt

Taiwanese company Wiwynn is suing X (Twitter) for not paying $61 million for server equipment ordered before Elon Musk bought the social network. X denies all allegations.

In the lawsuit, Wiwynn accuses X of breach of contract, breach of the principles of good faith and fair dealing, and dishonest performance of obligations. According to Tom's Hardware, two more allegations were later added to the lawsuit: willful misrepresentation of facts and misleading conduct.

The thing is, before Musk bought Twitter and renamed it X, the company contracted Wiwynn to supply "custom-built IT solutions, including server racks." And since these products were not part of mass production, Wiwynn had to order components in advance. As the lawsuit states, "the components used to assemble the product are generally unique and require long lead times to order, and Twitter has agreed to provide written consent to purchase and pay for the necessary components."

However, after Musk became the owner of Twitter, relations with the server dealer began to deteriorate. According to Wiwynn, X stopped paying for the server products they ordered and also did not respond to their inquiries about late payments. Wiwynn claims that X owes more than $32 million for IT products it supplied and also failed to cover the costs of components that Wiwynn had already paid to other suppliers. While the company may sell some components to other customers, Wiwynn claims X still owes him at least $61 million.

For its part, X argued that it did not breach the terms of its contract with Wiwynn because it "did not give final approval to order equipment that Wiwynn had already purchased and supplied." The representatives of X social network did not give any other comment. The case is pending in the U.S. District Court for the Northern District of California.