By Ibekimi Oriamaja
Twitter has filed a lawsuit against Elon Musk in an attempt to compel him to complete his $44 billion acquisition of the company.
On Tuesday, Twitter sued Musk in Delaware Chancery Court, urging him to honor the acquisition agreement.
On Tuesday, Twitter sued Musk in Delaware Chancery Court, urging him to honor the acquisition agreement.
According to the lawsuit, “Musk refuses to honor his obligations to Twitter and its stockholders because the agreement he signed no longer serves his personal interests.” “Musk appears to believe that, unlike every other party subject to Delaware contract law, he has the right to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” says the Wall Street Journal.
Mr Musk agreed to buy Twitter in April but announced last week that he was pulling out. Mr Musk’s attorneys informed the US Securities and Exchange Commission that the Tesla CEO would no longer pay the $44 billion required to complete the transaction.
Mr Musk’s lawyers stated in the SEC filings that Twitter was “in material breach of multiple provisions” of the merger agreement signed months ago.
According to Mr. Musk, Twitter failed to disclose information about spam bots, also known as fake accounts, on its platform. He refused to believe the company’s public claims that approximately 5% of its active users are bots.
Mr Musk accused Twitter of “clear material breach” of its “obligations under the merger agreement…” in SEC filings.
Twitter is being represented by William Savitt, an attorney at Wachtell, Lipton, Rosen & Katz. The law firm is well-known for its hostile takeover defense tactics, and it was the brains behind the poison pill that Twitter used to defend itself against Mr Musk’s hostile takeover.
Mr Musk’s legal team includes Alex Spiro and a team from Skadden, Arps, Slate, Meagher & Flom.
