The $90 Million Question: Elon Musk's X Settles High-Stakes Lawsuit Over Twitter Takeover Legal Fees

Well, it seems another chapter in the swirling saga surrounding Elon Musk's acquisition of Twitter – now X, of course – has officially closed. In a development that flew a bit under the radar, X has finally settled its substantial $90 million lawsuit against the high-profile law firm Wachtell, Lipton, Rosen & Katz. It’s a move that brings an end to a particularly contentious dispute over legal fees incurred during the rather dramatic takeover.

For those who might need a quick refresher, the entire kerfuffle stemmed from a hefty bill presented by Wachtell. This firm had been brought in by Twitter’s old board of directors back in 2022, right at the height of the intense legal wrangling to force Musk to go through with his $44 billion purchase. Wachtell's mission, it seemed, was to ensure the deal closed, and for their success, they were awarded a staggering "success fee" of $90.2 million just hours before Musk eventually took the reins.

Now, as you can imagine, Musk and his team at X weren't exactly thrilled with this particular invoice. Their lawsuit, filed in Texas, alleged that Wachtell had effectively gouged the company, charging an utterly exorbitant amount for their services. The core of their argument was that this massive success fee was paid without proper authorization and was simply out of proportion with the actual work performed, especially given the firm's prior hourly charges of around $13 million.

But alas, all good (or perhaps, bad) things must come to an end. Court filings in Travis County District Court in Texas recently confirmed that the lawsuit has been dismissed "with prejudice." What does "with prejudice" actually mean in plain language? Well, it signifies that this particular legal skirmish is truly over and done with, never to be refiled. It's the definitive period at the end of that sentence, legally speaking.

As is often the case with such high-stakes legal resolutions, the specifics of the settlement remain firmly under wraps. Neither X nor Wachtell has publicly disclosed any details regarding the terms, leaving us to speculate on the nature of the agreement. Still, for Musk's X, closing out a $90 million claim, even if it meant a payment of some kind, likely feels like a necessary step to move past the lingering legal hangovers from the acquisition and focus on the platform's future – whatever that may hold.