According to a court document, Twitter filed a lawsuit against Elon Musk for breaking the terms of the $44 billion agreement to buy the social media platform and asked a Delaware court to order the world’s richest man to complete the merger at the agreed $54.20 per Twitter share.
What lawsuit says
“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,” said the lawsuit.
According to the statement, Musk entered into a legally binding arrangement in April this year and is ending it because “it no longer serves his personal interests.”
The lawsuit accused Musk of “a long list” of violations of the merger agreement that “has cast a pall over Twitter and its business.”
Why Musk canceled the deal
According to Musk, there are mainly three reasons first that Twitter had broken the terms of the agreement by not providing sufficient details regarding spam accounts. Second, Twitter had misrepresented the number of spam accounts in its disclosures to the US financial watchdog. Third, the company had broken the agreement by not consulting Musk when firing senior employees recently.
What’s next?
In an effort to quickly resolve its legal matter before the deal’s completion deadline of 24th October, Twitter has asked a Delaware court to set up a four-day trial for its lawsuit in the middle of September. “The facts they marshal in their complaint give them maximum leverage to negotiate should they so wish,” says Brian Quinn, an associate professor at Boston College law school, the Guardian reported.