Elon Musk’s X Corp., formerly known as Twitter, has filed a lawsuit against financial services company Atlas Exploration in an effort to reclaim more than $713,500 in rent and related fees, citing an alleged breach of contract. This legal action comes as X faces its own legal battles over unpaid rent stemming from Musk’s acquisition of the company last October.
X Corp., which recently underwent a rebranding, lodged its lawsuit in the San Francisco Superior Court on Thursday, asserting that Atlas Exploration failed to meet its contractual obligations.
Atlas Exploration, formerly known as Point Up Inc., promotes itself as an “invite-only charge card,” granting members exclusive privileges related to dining and travel experiences.
According to the lawsuit, X and Atlas entered into a sublease agreement for office space located at 650 California Street in San Francisco’s financial district in April 2021. The complaint reveals that Atlas attempted to terminate this sublease prematurely last year.
X Corp maintains that Atlas owes more than $340,263 in unpaid rent for the months spanning from September to November of the previous year. In addition to this, X accuses Atlas of neglecting to fulfill any of its early termination fees.
Despite these allegations, Kevin Hill, the attorney representing Atlas in this legal dispute, has yet to respond to requests for comment made on Friday. In a letter to X Corp. sent in April, Hill contended that the company was unfairly demanding rent for specific months of the previous year, despite Atlas already making payments for their new office space.
This lawsuit is not an isolated legal challenge for X Corp. Following Elon Musk’s substantial $44 billion acquisition of the company last October, X has faced a series of legal actions concerning unpaid rent and other financial matters. One notable case involves the owner of X’s primary office at 1355 Market Street in San Francisco, who sued X Corp. for more than $3.1 million in unpaid rent. X Corp. is currently contesting these claims in court.