Canary Marketing, a San Francisco-based agency, is suing Twitter for $392,239.11, plus interest, for breaching its contract with the firm by not paying fees, according to a lawsuit filed Jan. 6.
The company describes itself in the lawsuit as a multi-talented marketing agency. On his website, claims to design, package, and distribute branded products for clients like Google, Slack, KFC, and Sephora.
Demand
According to the demand, Canary Marketing provided merchandise to Twitter from June 2020 to August 2022 under an agreement that Twitter would pay for its services within 60 days. upon receipt of an invoice.
As of September 2022, however, the lawsuit alleged that Canary Marketing’s invoices were not processed. At the time of filing the claimtwo other invoices remained unpaid, he alleged.
“Twitter seems to interpret the [acuerdo de contrato] from MSA as it allows you to pay or not to pay Canary bills when Twitter decides to do so”, the suit alleges.
Twitter and lawsuits
In recent months, Twitter has been plagued by several lawsuits over allegations of non-payment of fees or rent. It is also facing legal action from its own staff.
Musk has been desperately trying to cut costs at Twitter since his first week as CEO, when he laid off roughly half of the company’s 8,000 employees.
The layoffs continued into the new year as Musk continues to explore new avenues to cut costs. One such plan included closing smaller offices outside of its main centers in California, New York and London.
Musk reportedly stopped paying rent on his offices, including his San Francisco headquarters, and told employees to stop paying some of their vendors, according to a New York Times report. It also considered not paying the severance packages that were promised to laid off staff.