Twitter Officially Files Lawsuit Against Elon Musk During Takeover Debacle
Over the last week, there have been talks of Twitter filing a lawsuit against Elon Musk for pulling out for the $44 billion deal to purchase the social media platform, and it has now been confirmed they have officially done this.
In the lawsuit which was filed yesterday, Twitter said:
“[Musk] refused to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
Bret Taylor, board chairman of Twitter, claimed that the company were exploring taking legal action against Musk to force him to continue with the agreed deal.
Taylor added in another Tweet the link to the full lawsuit itself.
Twitter have stated in the lawsuit that they are requesting a four-day long trial in September and accuse Musk of acting in “bad faith”. The company goes on to explain their side in more detail:
“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,”
“Since signing the merger agreement, Musk has repeatedly disparaged Twitter and the deal, creating business risk for Twitter and downward pressure on its share price,”
When Musk announced that he wanted to pull out of the deal last week, he stated it was due to a number of reasons, including the fact that Twitter would not give any information on fake accounts.
There are a few directions this could go. A judge could order Musk to continue with the take over or pay the previously agreed $1 billion breakup fee. Another option is that the two parties might have to negotiate on the price of the deal or the judge may allow Musk to continue to pull out of the deal without paying anything. Musk is claiming that if Twitter take him to court, they will be forced to give the information about the fake accounts and bots that the previously would not give him.