On September 29th, Elon Musk’s X Corp, which is currently dealing with its own legal disputes related to unpaid rent, has filed a lawsuit against a financial services company in an attempt to recover over $713,500 in rent and fees that they claim are past due. This stems from a sublease agreement for office space in San Francisco.
'X' logo is seen on the top of the headquarters of the messaging platform X, formerly known as Twitter, in downtown San Francisco, California, U.S., July 30, 2023. REUTERS/Carlos Barria/File Photo Acquire Licensing Rights
Formerly known as Twitter, X Corp has taken legal action against Atlas Exploration, alleging a breach of contract. Atlas, previously known as Point Up Inc, offers an “invite-only charge card” that provides members with exclusive dining and travel benefits.
The sublease agreement between Atlas and X Corp for office space at 650 California Street in San Francisco’s financial district was established in April 2021. According to the lawsuit, Atlas attempted to terminate the sublease prematurely last year.
X Corp claims that Atlas owes them over $340,263 in rent for the period from September to November of the previous year. Additionally, X Corp accuses Atlas of not paying any of the early-termination fees.
Kevin Hill, an attorney representing Atlas in the dispute, did not respond immediately to a request for comment.
In April, Hill stated in a letter to X Corp that the company was unfairly demanding rent for certain months in the previous year after Atlas had already made payments for their new office space.
X Corp has been facing various legal actions related to unpaid rent and other invoices since Elon Musk’s $44 billion acquisition in October of the previous year. One such case involves the owner of X Corp’s main office at 1355 Market Street in San Francisco, who is suing X Corp for over $3.1 million in unpaid rent. X Corp is currently disputing these claims in court.
In addition to rent disputes, X Corp has also faced legal challenges from employees, including lawsuits contesting terminations, unpaid severance, and other benefits.
Jonathan Hawk, a lawyer representing X Corp, did not immediately respond to a request for comment. Likewise, a representative from X Corp had no immediate comment on the matter.
The case is filed under X Corp v Atlas Exploration Inc in the San Francisco Superior Court, with the case number CGC-23-609391.
