Twitter Sues Elon Musk for Retracting the Deal to Buy the Platform

Twitter filed a lawsuit against American billionaire Elon Musk, late Tuesday, July 12, in an attempt to force him to complete his acquisition of the social media company, by accusing him of “strange” and “bad faith” actions that caused irreparable harm. He fixed the platform, and “made a mess” of its share price.

Musk had pledged to pay $54.20 per share to Twitter, which agreed to these terms after its initial opposition to the deal.

The two sides have been preparing for a legal battle since Musk announced, on July 8, that he would abandon his troubled $44 billion offer to buy Twitter, after the company failed to provide enough information about the number of fake accounts.

Twitter’s lawsuit began with a strongly worded accusation, as it stated that Musk “refuses to fulfill his obligations to (Twitter) and its shareholders, because the deal he signed no longer serves his personal interests.”

She added, “Having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that unlike all other parties subject to contract law,” such as freedom to change his mind, empty the company, disrupt its operations, and destroy shareholder value, according to the statement. The text of the lawsuit.

Twitter has filed its lawsuit in the Delaware Chancery Court, which frequently handles commercial disputes between several companies, according to the Associated Press.

As part of the April deal, Twitter could have taken a $1 billion breakup fee, which Musk agreed to pay.

Musk tweeted on his Twitter account after the company filed the lawsuit, saying, “How ironic.”

Last Friday, Musk claimed that Twitter failed to provide sufficient information about the number of fake accounts, and in a letter to the Twitter board of directors, Musk’s lawyer, Mike Ringler, complained that his client had sought nearly two months ago for data to rule on the case. The spread of “fake or spam” accounts on the social media platform.

On July 7, Twitter sought to shed more light on how to remove fake accounts, and said that it is deleting one million fake accounts from the platform daily, as part of efforts to reduce “robot users”, after Musk demanded more Details of the company.

The accounts represent well under 5% of the quarterly active user base.

Twitter describes Musk’s tactics as a “model of hypocrisy”, and that he changed his mind once the market fell. Last Friday, Twitter shares fell 5% to $36.81, well below the $54.20 Musk agreed to pay.

The company claimed that he acted in bad faith, accusing him of requesting information about the company in order to accuse it of making “misrepresentations” about its business to regulators and investors.

 

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Summary

Twitter filed a lawsuit against American billionaire Elon Musk, late Tuesday, July 12, in an attempt to force him to complete his acquisition of the social media company, by accusing him of “strange” and “bad faith” actions that caused irreparable harm. He fixed the platform, and “made a mess” of its share price.

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