TWITTER SUED FOR BREACH OF CONTRACT & REFUSAL TO PAY $8 MILLION TO A KEY SOFTWARE VENDOR


After learning last week that Twitter has stopped paying its vendors and the rent of most of its offices, including the Twitter HQ building in San Francisco, we have learned that they are now being sued by one of the company’s most prominent software vendors.


Ever since Musk took control of Twitter, he has asked the finance teams and all other departments responsible for clearing payments to stop paying vendors and rent.

A lawsuit was recently filed against Twitter by Imply Data, Inc, alleging that they failed to pay a $1,092,000 invoice in a software contract that doesn’t expire until late 2024. And by the time the contract ends, Twitter would have another $7 million outstanding. The lawsuit was filed in the California Superior Court in San Francisco County and alleged a breach of contract.


Imply makes a database based on Apache Druid open source software and products for managing and monitoring Druid clusters, which Twitter uses for their internal analytics, especially regarding streaming and videos.

“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 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.”


When Musk initiated the conversation of repurchasing Twitter in May this year, Twitter informed Imply that it would not renew the contract again but would continue to use its services and pay them for it until the end of the agreement on September 30, 2024.

Shortly after Musk’s purchase of Twitter was completed, Twitter refused to pay the outstanding quarterly invoice due on November 30, 2022, and {Twitter disclaimed any obligation to pay any future invoices from Imply.

Imply is seeking financial damages for breach of contract. “Imply anticipates that Twitter’s breach will continue, with the amount in default increasing each quarter until the end of the License Agreement’s term. Twitter’s breach has damaged and will damage Imply in an amount that will be proven at trial, but which will likely be more than $8 million,” the company alleged in their lawsuit.

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