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Elon Musk's X is facing yet another possible legal battle, this time over $120 million worth of unpaid IT bills.
Taiwanese tech firm Wiwynn is suing the social media giant formerly known as Twitter for $61 million over claims it refused to pay for around $120 million in server parts after Musk took over in 2022.
It adds to the avalanche of lawsuits Musk is still facing over his takeover of X, with numerous former executives also suing the billionaire over millions in unpaid severance.
According to the complaint, filed in the Northern District Court of California last week, Wiwynn claims the company violated a 2014 purchasing agreement to provide Twitter with custom IT products.
The Taiwanese firm says that in November 2022, shortly after Musk dramatically took over the social media giant, Twitter "abruptly stopped" making any payments to Wiwynn and failed to respond to Wiwynn's request for payment for completed products.
The complaint also says that Wiwynn, which makes servers and storage systems for data centers and cloud providers, had amassed $120 million worth of parts to fulfill Twitter's existing orders, under the assumption that Twitter had taken liability for them.
However, Twitter, which began slashing staffing and cloud spending shortly after Musk took over, refused to accept responsibility for these actions or respond to Wiwynn's attempts to communicate with the company, the suit says.
According to the complaint, Wiwynn has been able to cancel or recoup about $59 million worth of the components and is now suing Musk's company for damages equal to the remaining $61 million.
In addition to the Wiwynn lawsuit, Musk is facing lawsuits from several former Twitter executives, including former CEO Parag Agrawal, over $128 million in unpaid severance.
X is also being sued by former Twitter chairman Omid Kordestani over $20 million worth of shares and other ex-Twitter staff over unpaid bonuses, with the growing number of legal fights unlikely to help the company's reportedly sagging revenues.
Not to be outdone, Musk has also filed his own fair share of lawsuits on X's behalf. The Tesla CEO recently sued several advertisers over claims they conspired to boycott the platform, with one trade body shutting down shortly after the lawsuit was filed.
X and Wiwynn did not immediately respond to requests for comment from Business Insider.
