Twitter stiffs software vendor with $8 million left on contract, lawsuit says
A lawsuit says Twitter failed to pay a $1,092,000 invoice in a software contract that doesn't expire until late 2024, and that the Elon Musk-led company apparently intends to stiff the vendor on another $7 million worth of payments.
Imply Data, Inc. sued Twitter in California Superior Court in San Francisco County, alleging breach of contract. The lawsuit was filed on Tuesday (see complaint) and reported by Bloomberg today.
"For over four years, Imply has licensed its proprietary software to Twitter, and Twitter has paid Imply over $10 million," the lawsuit said. "Twitter has always been very pleased with Imply's product and its related maintenance and support services, so, in mid-2021, the parties extended the term of their software license and service agreement for an additional three years from October 1, 2021, through September 30, 2024." In May, a few weeks after Musk struck a deal to buy Twitter, the company notified Imply Data that it would not renew the contract again but "acknowledged the License agreement would 'continue in full force and effect' until the end of its term on September 30, 2024," the lawsuit said.
