Twitter sued after alleged failure to pay to dismantle Sydney office

Sydney-based company Facilitate Corporation filed the claim in the United States District Court in California, alleging that the social media giant had stopped paying invoices for services across London, Dublin, Singapore, and Sydney.

The claim said the fit-out group had been contracted by the company since 2015 to build out and develop its office spaces in several non-US locations to “Twitter’s satisfaction and Twitter paid its invoices”.

But that changed after Musk purchased Twitter for $66bn in October 2022, according to Facilitate.

In documents filed with the court, the organisation alleged the billionaire’s moderation decisions – including banning users who criticised him and reinstating accounts such as former president Donald Trump – alienated adversaries and threw the social media giant into “instant financial crisis”.

“On information and belief, Twitter responded with a campaign of extreme belt-tightening that amounted to requiring nearly everyone to whom it owes money to sue,” Facilitate alleged.

“On information and belief, Twitter stopped paying rent on some of its offices and stopped paying several vendors whose services it was still using.

“Twitter also cancelled many contracts and stopped paying people to whom it owes money.”

Facilitate said that between early 2022 and early 2023 it provided services to Twitter in London and Dublin for sensor installations and a full office fit out construction in Singapore.

When the social media giant left Australia to cut costs, Facilitate decommissioned and temporarily stored its office contents.

The bill for the works across the three locations totalled more than $1.05 million, which Facilitate says Twitter was contractually obligated to pay within 60 days of receiving the invoice.

Of this, more than $60,000 is related to the Sydney office.

“Following the acquisition, Facilitate corresponded about its outstanding invoices with its remaining contacts at the company,” documents filed to the court said.

“They gave no indication that Twitter disputed it owed the amounts on the invoices and offered no justification for not paying,”

The company is asking the court to force Twitter to pay the invoice, plus damages and interest. Facilitate applied for a jury trial, should the matter proceed.

Twitter is yet to file a response.