Elon Musk's X Corp is facing its own legal claims over unpaid rent and has filed a lawsuit against a financial services provider in order to recover more than $713,500 in allegedly unpaid rent and other expenses related to a rental agreement for San Francisco office space.
X, formerly known as Twitter, filed a lawsuit against Atlas Exploration in San Francisco Superior Court, citing breach of contract.
Atlas, formerly Point Up Inc, markets itself as "an invite-only charge card" that gives members access to exclusive dining and travel.
In April 2021, the lawsuit claimed that Atlas and X signed a sublease deal for premises at 650 California Street in San Francisco's financial centre. According to the complaint, Atlas tried to end the sublease early last year.
According to X, Atlas owes it more than $340,263 for the rent from September to November of last year. Additionally, X charged Atlas with not paying any of the early termination costs.
On Friday, a request for comment was made of Kevin Hill, a lawyer who has defended Atlas in the conflict.
In an April letter to X, Hill alleged that the company was unjustly requesting rent for a few months of the previous year despite the fact that Atlas had already made payments on its new office space.
Following Musk's $44 billion takeover last October, X has been the target of numerous court cases regarding unpaid rent and other invoices.
In one instance, X was sued for more than $3.1 million in back rent by the owner of the company's main office at 1355 Market Street in San Francisco. In court, X is contesting the allegations.
In January, X was sued over allegedly unpaid rent on its London offices by Britain's Crown Estate, which oversees the monarchy's real estate portfolio.
Separately, X is dealing with numerous employee lawsuits that contest benefits, unpaid severance, and terminations.
Jonathan Hawk, X's attorney, did not immediately reply to a message requesting comment. A spokesperson from X was unable to comment right away.
X Corp. v. Atlas Exploration Inc., San Francisco Superior Court, No. CGC-23-609391, is the matter at hand.
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