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Twitter headquarters is seen in San Francisco on Nov. 18, 2022.Â
Anadolu Agency/Anadolu Agency by way of Getty ImagesTwitter was sued for hundreds of thousands of {dollars} over allegations of unpaid rent at the corporate’s San Francisco headquarters, based on a lawsuit filed on Friday, Jan. 20.
The go well with is the fruits of monthslong rumors that beneath new CEO Elon Musk, Twitter hasn’t been paying rent on its headquarters at 1355 Market St. Those rumors have been originally reported by the New York Times. In the interim, two other unrelated lawsuits have been filed in opposition to Twitter for nonpayments. Additional tales have emerged that Twitter isn’t paying for janitorial services at its headquarters and that sure rooms within the headquarters have been outfitted with beds, the latter of which led to a still-open investigation by San Francisco’s Planning Department and Department of Building Inspection.
Shorenstein, the true property funding firm that initially acquired the constructing at 1355 Market St. in 2011, alleged within the go well with that Twitter owes $3.162 million in unpaid rent for Jan. 2023 — plus curiosity and late charges. The go well with alleged that Twitter did not pay rent in Dec. 2022 both; Shorenstein was capable of acquire the December rent quantity from Twitter’s $3.6 million letter of credit score, which functionally served as a safety deposit. The actual property firm then took roughly $265,000 from the remaining letter of credit score to cowl a piece of the January rent. That letter of credit score steadiness has now been drawn right down to $1, based on the lawsuit.
Shorenstein stated within the go well with that on account of the Musk buyout final October, Twitter’s letter of credit score was supposed to extend properly past $3.6 million — by a sum of $10 million, in truth. But Shorenstein alleged that Twitter has refused to replenish the quantity withdrawn from its letter of credit score to cowl rent owed, and has additionally refused to bump up its letter of credit score by $10 million.
Via a consultant, Shorenstein declined to touch upon the lawsuit. Twitter’s communications division was eradicated after Musk turned CEO.
