Elon Musk’s X Corp Involved in Another Legal Dispute Over Unpaid Rent, This Time as the Plaintiff

The ‘X’ logo adorns the top of the headquarters of the messaging platform X, previously known as Twitter, situated in downtown San Francisco, California, U.S., as of July 30, 2023.

Elon Musk’s X Corp, currently facing legal claims for unpaid rent, has taken legal action against a financial services company to recover more than $713,500 in allegedly overdue rent and other fees resulting from a sublease agreement for office space in San Francisco.

Previously known as Twitter, X initiated a lawsuit against Atlas Exploration in San Francisco Superior Court on Thursday, alleging a breach of contract.

Atlas, formerly Point Up Inc, promotes itself as “an invite–only charge card” providing members exclusive access to dining and travel opportunities.

According to the lawsuit, Atlas and X entered a sublease agreement for space at 650 California Street in San Francisco’s financial district in April 2021. The complaint revealed that Atlas attempted to terminate the sublease prematurely last year.

X claimed that Atlas owes more than $340,263 for rent from September to November of the previous year. X also accused Atlas of failing to pay the early-termination fee.

Kevin Hill, an attorney representing Atlas in this dispute, did not respond immediately to a request for comment on Friday.

In April, Hill stated in a letter to X that the company was unjustly demanding rent for certain months last year, even after Atlas had already made payments for its new office space.

Following Musk’s $44 billion buyout in October, X has been embroiled in various legal battles concerning unpaid rent and other outstanding invoices.

In one instance, the owner of X’s main office at 1355 Market Street in San Francisco sued X for more than $3.1 million in unpaid rent. X is currently contesting these claims in court.

Additionally, Britain’s Crown Estate, responsible for managing the monarchy’s property portfolio, filed claims against X in January, alleging unpaid rent relating to its London headquarters.

Separately, X is contending with a multitude of employee lawsuits challenging terminations, unpaid severance, and other benefits.

Jonathan Hawk, a lawyer representing X, did not respond immediately to a message seeking comment. Likewise, a representative from X had no immediate comment.

The case is titled X Corp v Atlas Exploration Inc and is being heard in San Francisco Superior Court under case number CGC-23-609391.