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Twitter sued for not paying rent at San Francisco HQ

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Twitter headquarters in San Francisco on November 18, 2022.

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Twitter sued for millions of dollars in company’s unpaid rent allegations San Francisco Headquarters, according to a lawsuit filed on Friday, Jan. 20.

The lawsuit is the culmination of months of rumors under new CEO Elon Musk that Twitter is not paying the rent for its headquarters at 1355 Market Street. first reported By The New York Times. in the meantime, 2 other An unrelated lawsuit was filed against Twitter for non-payment. Additional stories came up on Twitter not paying for cleaning services Certain rooms at the company’s headquarters were outfitted with beds, the latter of which has led to an open investigation by San Francisco’s planning and building inspection departments.

Shorenstein, the real estate investment firm that first acquired the 1355 Market St. building in 2011, said Twitter owed $3.162 million in outstanding rent in January 2023, plus interest and late fees. claimed in lawsuit. The lawsuit alleges Twitter failed to pay its rent in December 2022. Shorenstein was able to get his December rent from her $3.6 million letter of credit on his Twitter that functionally acted as a security deposit. The real estate company then took about $265,000 from the remaining letter of credit to cover part of January’s rent. The letter of credit balance has now been reduced to $1, according to the lawsuit.

In the complaint, Shorenstein said Twitter’s letter of credit should have increased by $10 million to well over $3.6 million as a result of its Musk acquisition last October. However, Shorenstein alleged that Twitter refused to replenish the amount withdrawn from the letter of credit to cover the rent he owed, and that he also refused to increase the letter of credit by $10 million. .

Through a representative, Shorenstein declined to comment on the lawsuit. Twitter’s communications arm was discontinued after Musk took over as CEO.



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