In a quiet twist to one of Silicon Valley’s more dramatic score-settling attempts, X has abruptly stepped away from its fight to claw back a hefty $90 million fee from powerhouse law firm Wachtell, Lipton, Rosen & Katz — the same firm that helped steer the old Twitter through Musk’s attempt to reverse his own takeover.
A brief filing in a California state court announced the retreat, stamped “with prejudice,” the legal equivalent of slamming the door shut and tossing the key. No explanations. No post-fight commentary. Just an exit.
The case, born in 2023 and rooted in the chaotic days before Musk officially took over the then–Twitter in 2022, had accused Wachtell of pocketing an “improper bonus” after a whirlwind legal campaign that forced Musk to consummate his $44 billion purchase. X offered no public reasoning for stepping back, and the company’s representatives stayed silent.
Wachtell, however, didn’t let the moment pass quietly, calling the dismissal proof that the accusations never held weight — emphasizing there was no settlement behind the curtain.
A judge had earlier pushed the dispute toward private arbitration, with both sides scheduled to update the court in December. The now-vanished lawsuit had painted a picture of outgoing Twitter executives splurging on “success” fees as they raced toward closing day, a portrayal Wachtell firmly rejected. The firm countered that Twitter’s board had properly signed off on the payment, crediting its lawyers with preserving billions in shareholder value after months of intense litigation.
With the filing now wiped from the battlefield, the long-running spat ends not with a bang, but with an unexpected, silent withdrawal — leaving only the echo of a fight that never made it to the final round.
