Sri Nine Market Square LLC has filed a lawsuit against Twitter, alleging that the company failed to pay $3.36 million in rent for its offices on Market Street in December, along with $3.42 million owed for January. According to the claim, Twitter leases over 460,000 square feet across eight floors of a building in San Francisco. The lawsuit was filed in a California state court.
Since acquiring Twitter, Elon Musk has focused on cutting the company’s expenses, including laying off half of the workforce and reducing rent in other office locations. These measures came as Twitter faced the first payment on a $12.5 billion debt Musk took on to buy the company.
Sri Nine Market Square held a letter of credit worth $3.6 million as collateral, which Twitter was required to increase to $10 million upon the transition of control—an adjustment that was made following Musk’s $44 billion acquisition of Twitter.
Sri Nine reported that to cover the December rent of $3.36 million and part of January’s rent, the company drew on this letter of credit, leaving a remaining balance of just $1.
Sri Nine is now seeking to recover the unpaid rent from Twitter, along with compensation for the breach of lease terms through legal proceedings.
Twitter, which has dissolved its public relations department, has not provided any comments on the matter.