According to Reuters, Twitter has filed a lawsuit against Elon Musk in an effort to compel Musk to complete the $44 billion acquisition of Twitter. According to Twitter’s claim, Musk has trashed the firm, disrupted its operations, and devalued its stockholders.
Musk seems to think that he – unlike every other party subject to Delaware contract law – is allowed to change his mind, trash the firm, disrupt its operations, destroy shareholder value, and walk away after putting Twitter in play and signing a seller-friendly merger deal.
Tesla CEO Elon Musk said on Twitter last Friday that he was terminating the contract due to “material violation” of “many terms” of the contract. Tesla CEO Elon Musk has said that he does not accept Twitter’s assertion that fewer than 5% of its users are spam accounts.
Musk said that Twitter had breached its contractual obligations by failing to supply him with the spam account data he needed, despite his repeated requests.
Bret Taylor, the chairman of Twitter, claimed that the company’s board was “committed to finalizing the deal” and prepared to take legal action to enforce the agreement after Tesla CEO Elon Musk announced he wanted to terminate the merger agreement.
In April, Musk made a bid to buy Twitter for $54.20 a share, and the company agreed. However, if Musk pays a $1 billion+ punishment and Twitter accepts, the agreement may be called off and Musk and Twitter would both walk away from it.