After the failed Twitter deal with Elon Musk, the social media platform sued Musk.
Twitter has launched legal action against Tesla CEO Elon Musk, who cancelled the deal to buy the social media platform days ago.
Twitter has filed a lawsuit against Elon Musk to force the billionaire to conclude the takeover agreement agreed by both parties.
According to court documents, the lawsuit filed in the Delaware Court of the Chancery on July 12, 2022 alleges that Musk violated the terms of a takeover agreement signed by both Twitter and Musk.
The lawsuit says Musk has repeatedly “vilified” Twitter and the deal since signing the contract.
Meanwhile, this move comes shortly after Musk cancelled the deal to buy the social media giant for $44 billion after an initial suspension. One reason for the cancellation is, among other things, that Twitter refused to release information about spam bots.
The latest lawsuit found that Musk’s claims were a pretext and were unfounded.
An extract from the court document:
“After organizing a public spectacle to bring Twitter into play, and after proposing and then signing a seller–friendly merger agreement, Musk apparently believes that – unlike any other party subject to Delaware contract law – he is free to change his mind and destroy the company, interrupt its operation, destroy shareholder value and walk away.”
Back in April, Musk acquired a 9.2% stake in Twitter, which was followed by an appointment of the billionaire to the company’s board. However, the appointment was short-lived, as Musk reversed his decision.
Instead, Musk offered to take over Twitter for $44 billion, which Twitter accepted. Meanwhile, Twitter’s complaint claimed that Musk acted against the deal, no sooner did the markets start to decline.
According to the lawsuit, instead of bearing the costs of the market collapse, as the takeover agreement requires, Musk wants to shift them to the shareholders of Twitter.
