Server dealer keeps hitting at Elon Musk for $61 million bill — Wiwynn sues X for unpaid IT infrastructure products

ingtar33 said:

this article is deceptive to the extreme seriously misrepresenting the issue at hand

1) this purchase was made in 2014 without a contract signed. years before Musk took over Twitter

From the original complaint:
8. On September 24, 2014, recognizing the value that Wiwynn’s cloud IT infrastructure
products would bring, X Corp. (then known as Twitter, Inc.) contracted with Wiwynn and entered into a Master Purchase Agreement. A true and correct copy of the Master Purchase Agreement is attached hereto as Exhibit A.

ingtar33 said:

2) Wiwynn claims this project took almost 10 years to build what was bought in 2014, no product was delivered, simply built, twitter paid them almost 30 million dollars in continuing expenses for products not delivered on a contract that was never signed
3) When payments stopped when Musk took over twitter, Wiwynn continued to purchase parts for this IT infrastructure product they had yet to deliver accruing a claimed "additional 32mil in expense

From the original complaint:
15. Beginning in November 2022, X Corp. abruptly stopped making any payments to
Wiwynn—including for delivered finished products—and failed to respond to multiple
communications from Wiwynn inquiring about and demanding the past-due payments for delivered
finished products.

ingtar33 said:

4) when they asked for Payment from X, X replied they had no contract in place and no tech delivered so they would not continue to pay Wiwynn for a product they aren't using and don't need.

From the original complaint:
9. Pursuant to the terms of the Master Purchase Agreement, effective as of September 24, 2014, between Twitter, Inc., for itself and the benefit of its subsidiaries and affiliates, and Wiwynn Corporation (“Master Purchase Agreement”), Twitter, Inc.—now X Corp.—provided to Wiwynn forecast orders for the products it intended to purchase. In accordance with the Master Purchase Agreement, after receiving these forecasts from X Corp., Wiwynn prepared lists of custom components which it would need to purchase in order to fulfill X Corp.’s forecast requirements. The Master Purchase Agreement required Wiwynn to submit these lists to X Corp. for approval before it could purchase the custom components.10. In addition to approving the purchase of the custom components, X Corp. would occasionally direct Wiwynn to purchase additional, non-custom components to be used in the manufacture of products included in X Corp.’s forecasts. When directing Wiwynn to purchase these non-custom components, X Corp. explicitly approved such purposes in writing and assumed liability for the goods.
11. During the course of dealing of the parties for nearly eight years, X Corp. understood that by approving the purchase of the needed components, X Corp. was assuming liability for these components in the event that the components were not used in the manufacture of products forecasted by X Corp.12. In its email correspondences with X Corp., Wiwynn informed X Corp. that it would not begin component procurement needed to fulfill X Corp.’s orders under the Master Purchase Agreement until X Corp. approved its list of custom components.
13. In addition, Wiwynn explicitly informed X Corp. that Wiwynn would not procure noncustom components without an express written acknowledgement from X Corp. that X Corp. would assume liability for those components. Again and again, X Corp. approved these requests in writing.
14. The Parties followed this general course of conduct for approximately eight years without issue. Prior to November 2022, X Corp. placed orders and made full payments for all of the products made from the components which Wiwynn purchased only after X Corp. confirmed to Wiwynn that it would assume liability for those components.
15. Beginning in November 2022, X Corp. abruptly stopped making any payments to Wiwynn—including for delivered finished products—and failed to respond to multiple communications from Wiwynn inquiring about and demanding the past-due payments for delivered finished products.
16. At this time, Wiwynn had procured and paid for, at the direction and approval of X Corp., approximately $120 million of custom components and non-custom components (which X Corp. had expressly authorized Wiwynn to purchase in writing) to manufacture the products forecasted and/or ordered by X Corp. However, at this time, X Corp. also stopped providing any additional instructions for Wiwynn to manufacture or deliver any finished products to X Corp. To no avail, Wiwynn made many inquiries to X Corp. as to how X Corp. would resolve its liability for these unused components Wiwynn purchased to fulfill X Corp. orders.

From the amended complaint:
19. On multiple occasions, Wiwynn expressly informed X Corp. that, without explicit approval, procurement activities for custom components would not commence. X Corp. provided such approval only after conducting internal reviews to ensure that the forecasts were stable and no changes were necessary. True and correct copies of exemplary email correspondence between the parties in which X Corp., through its then Senior Supply Chain Manager Christopher Kan, approved and assumed liability for the procurement of such custom components are attached hereto as Exhibit C.

ingtar33 said:

and this is what started the lawsuit. this is a lawsuit over a contract which was never signed for a product which was never delivered. The only reason Wiwynn has a leg to stand on is Twitter apparently paid them millions, and that I know is considered dejure consent to the contract by most courts. the problem is it appears twitter/x after musk took over never paid them, so it's debatable if that consent will matter now they're under new leadership.