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World's Richest Man's Complains About Law Firm's 'Greed'

I'd like to report a murder. The victim is 'irony.'

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997242After Elon Musk tried to get out of buying Twitter, Wachtell rolled in to hold him to the terms of the merger agreement he hoped to escape. After forcing Musk back to the deal, the venerable firm continued to advise Twitter to get the deal over the finish line. For its efforts, the firm sought and received a “success fee” of around $70 million. Now, X lawyers are suing Wachtell and just asked to keep the case out of arbitration based on Wachtell’s “greed.”

Can’t make this stuff up!

To put this in perspective, as of the last estimation of Musk’s net worth, the $70 million success fee sought by Wachtell would be the equivalent of a first-year associate for $60.

Is $70 million a lot? Sure. Is it a reasonable ask for a law firm that secured $44 billion for its client? Yeah, actually. The “greed” claims become all the more ridiculous when you recall that Wachtell sets this fee based on earning “60% to 80% of the fees paid to investment advisors” on a deal, meaning there’s some knucklehead frat bro banker out there earning way more and no one is saying jack. Morgan Stanley got paid an estimated $1.3 billion on this deal.

But it’s easier to burn bridges with one Am Law 50 firm than to alienate Goldman Sachs, so it’s Wachtell that has to be dragged as “unethical” and greedy for seeking a pittance compared to the bankers.

Pointing to ‘Wachtell’s Greed,’ X Corp Argues Law Firm Can’t Force Arbitration in Fee Lawsuit [American Lawyer]

Earlier: Elon Musk Sues Wachtell For Being Better Lawyers
Twitter Complaint Demonstrates That Every Lawyer, Everywhere, Always Is Smarter Than Elon Musk

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HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

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