Twitter is being sued by one of its main software suppliers, after news last week that it had ceased paying its vendors and the rent on most of its facilities, including its San Francisco headquarters building.
When Elon Musk failed to pay Imply Inc for their services, they decided to sue Twitter for breach of contract. Twitter employs Imply databases and other technologies for video and streaming analytics.
Since Musk assumed control of Twitter, he has instructed the finance teams and any other departments responsible for clearing payments to suspend all payments to suppliers and landlords.
Imply Data, Inc. has filed a lawsuit against Twitter, claiming that it has not paid a $1,092,000 invoice for software that is still under contract until late 2024. Twitter would owe an additional $7 million by the time the deal expired. This breach of contract action was brought in the California Superior Court for the County of San Francisco.
Twitter utilises Imply’s database, which is based on the open-source software Apache Druid, for internal analytics, notably those involving streams and videos. Imply also develops tools for administering and monitoring Druid clusters.
According to the complaint, “Imply has leased its proprietary software to Twitter for more than four years, with Twitter paying Imply over $10 million.” Midway through 2021, the parties agreed to extend their software licencing and service agreement for an additional three years, from October 1, 2021, through September 30, 2024, since “Twitter has always been extremely happy with Imply’s product and its accompanying maintenance and support services.”
Back in May, when Musk first broached the idea of purchasing Twitter, the company told Imply that it would not be renewing its contract with them but will continue to do so until the conclusion of the current agreement on September 30, 2024.
The unpaid quarterly payment came due on November30,2022, shortly after Musk’s acquisition of Twitter was finalised, but Twitter refused to pay it and denied any further duty to pay Imply’s obligations.
Damages for breach of contract are being sought by Imply. Imply believes Twitter will continue to be in violation of the License Agreement for the foreseeable future, with the amount of default accruing quarterly. Imply claims in their complaint that they have suffered and will suffer damages from Twitter’s breach that “will likely be in excess of $8 million.”
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