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A lawsuit claims that Twitter did not pay an invoice of $1,092,000 under a software contract that expires in late 2024.
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The company, run by Elon Musk, will try to charge the vendor another $7 million in payment.
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Imply Data, Inc. filed a lawsuit against Twitter for breach of contract in California Superior Court in San Francisco County in San Francisco County, claiming violation of a contract. This lawsuit was filed Tuesday.
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"For more than the past four years Imply licensing its own proprietary program to Twitter as well Twitter have paid Imply more than $10 million," the lawsuit stated.
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"Twitter was always happy with Imply's product and associated maintenance and support services."
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"In the mid-2021 period the parties extended the duration of their software license and service contract for an additional three years starting September 1, 2021 until September 30, 2024."
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In May, just a couple of weeks after Musk she was agreed to purchase Twitter, the company informed Imply Data that it would not renew the contract.
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"Acknowledged that the License agreement will 'continue in full force and effect' up to the expiration date at the end of September, 2024." the lawsuit stated.
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Twitter continued to make quarterly installments for the purchase up to the point that Musk finished the transaction at the end of October.
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