Elon Musk’s X Corp, formerly Twitter, finds itself entangled in another legal battle, this time suing financial services firm Atlas Exploration for over $713,500 in unpaid rent and related fees arising from a sublease agreement for office space in San Francisco.
X’s complaint, filed in San Francisco Superior Court, accuses Atlas of breaching the contract.
The dispute revolves around a sublease agreement inked in April 2021, securing office space at 650 California Street in San Francisco’s financial district.
Trouble started when Atlas, previously known as Point Up Inc, attempted to prematurely terminate the sublease agreement.
X alleges that Atlas owes them more than $340,263 for the rent spanning September to November of the previous year.
Furthermore, X asserts that Atlas failed to honor the early-termination fee. Kevin Hill, an attorney representing Atlas, has not yet commented on the matter.
Hill had previously asserted, in a letter sent to X in April, that the company was unjustly demanding rent for months during which Atlas had already made payments for their new office space.
This legal skirmish is just one of many X Corp has faced in the wake of Elon Musk’s $44 billion takeover in October.
Notably, the owner of X’s primary office at 1355 Market Street in San Francisco has sued them for over $3.1 million in unpaid rent, a matter currently before the courts, with X contesting the claims.
Even across the Atlantic, X has had to contend with Britain’s Crown Estate, which manages royal properties, filing claims for alleged unpaid rent on their London headquarters.
Internally, X faces an array of employee lawsuits that challenge terminations, unpaid severance, and other employment-related benefits.
Jonathan Hawk, legal counsel for X, has yet to respond to inquiries, and X Corp itself has not issued an immediate statement on the ongoing dispute.
In this legal tussle, X Corp is seeking to recoup its unpaid rent and uphold the terms of the sublease agreement, adding another layer to the mounting legal challenges faced by Musk’s ever-evolving corporate empire.
The case is formally known as X Corp v Atlas Exploration Inc, and it resides in the San Francisco Superior Court, No. CGC-23-609391.