Twitter Inc. has filed a lawsuit against Elon Musk for breaking the terms of the $44 billion deal to buy the social media platform and urged a Delaware court to order the world’s richest man to complete the merger at the agreed-upon $54.20 per Twitter share, according to a court document,
“Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions,” stated Twitter.
Musk announced the termination of the agreement on Friday, claiming that Twitter had broken the terms by refusing to provide information on phoney or spam accounts on the platforms, which is essential to the operation of its business.
“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 on Tuesday.
As Twitter tries to hold Musk to his agreement to pay USD 54.20 per share for the business, the lawsuit marks the start of what could be a protracted legal struggle. Twitter said that Musk tried to back out of the agreement, which needed a “substantial adverse effect” or breach of contract, and is being defended by M&A powerhouse Wachtell, Lipton, Rosen & Katz.
Back in June, Musk publicly charged the microblogging platform with violating the terms of the merger agreement and threatened to walk away and cancel the purchase of the social media firm if it did not give him the information he had asked for regarding spam and phoney accounts.
Elon Musk on Wednesday took to Twitter to share his reaction, he wrote, “Oh the irony lol” for his 100 million followers on the platform.
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