Updated · Aug 15, 2022
Twitter Sues Elon Musk for Terminating Takeover Deal
Updated · Jul 13, 2022
The social media platform filed the lawsuit in a Delaware court on Tuesday. It intends to force him to complete the agreed purchase.
Deal Must Go On
Twitter is suing Elon Musk in a bid to force him to complete his agreed $44 billion acquisition of the social network. It filed the lawsuit against the Tesla CEO in the Delaware Court of Chancery on Tuesday.
The social media giant said that Musk “refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.
After initially putting it on hold, Musk said late last week that he is terminating the agreement. In what has become a drawn-out saga, he has accused Twitter of refusing to hand over information on spam bots on the platform.
In April, the billionaire agreed to pay $54.20 per share for the company, but it has not been smooth sailing. Musk believes that there are significantly more fake accounts than the 5% that Twitter admits in regulatory filings. He has also alleged that the company violated the agreement by firing two top managers and a part of its talent acquisition team.
But Twitter feels very strongly about Musk’s move.
“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he - unlike every other party subject to Delaware contract law - is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” the lawsuit said.
Elon Musk responded to the lawsuit in a characteristic fashion.
Oh the irony lol— Elon Musk (@elonmusk) July 12, 2022
Twitter filed a motion for expedited proceedings, asking the court for a four-day trial.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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