Elon Musk’s social media platform, X (formerly Twitter), has officially dropped its lawsuit against the law firm Wachtell, Lipton, Rosen & Katz, which sought to recover a significant portion of a $90 million fee paid to the firm for its role in ensuring Musk’s completion of the $44 billion acquisition of Twitter. ([reuters.com](https://www.reuters.com/legal/government/musks-x-ends-90-million-lawsuit-against-law-firm-wachtell-2025-11-20/?utm_source=openai))
The lawsuit, initiated in 2023, alleged that Wachtell and Twitter’s executives engaged in unethical conduct by approving substantial “success” or “project” fees just before the sale’s closure. Musk contended that these payments constituted improper bonuses that violated fiduciary duties. ([reuters.com](https://www.reuters.com/legal/government/musks-x-ends-90-million-lawsuit-against-law-firm-wachtell-2025-11-20/?utm_source=openai))
In a recent filing with the California state court, X Corp. requested a dismissal of the case with prejudice, indicating that the lawsuit cannot be refiled. The filing did not disclose the reasons for the dismissal. Both X Corp. and its legal representatives have declined to comment on the matter. ([reuters.com](https://www.reuters.com/legal/government/musks-x-ends-90-million-lawsuit-against-law-firm-wachtell-2025-11-20/?utm_source=openai))
Wachtell expressed satisfaction with the case being dropped and clarified that no settlement was reached. The firm had previously stated that the fees were approved by Twitter’s board and reflected its successful legal defense, which secured the merger and protected shareholder value. ([reuters.com](https://www.reuters.com/legal/government/musks-x-ends-90-million-lawsuit-against-law-firm-wachtell-2025-11-20/?utm_source=openai))
Earlier, a judge had ordered the dispute to be resolved in private arbitration, with a follow-up court update scheduled for December. ([reuters.com](https://www.reuters.com/legal/government/musks-x-ends-90-million-lawsuit-against-law-firm-wachtell-2025-11-20/?utm_source=openai))
This development marks the conclusion of a contentious legal battle over the fees associated with one of the most high-profile corporate acquisitions in recent history.