Twitter has decided to undertake legal actions against Elon Musk, who terminated the buyout deal to acquire the social media platform several days ago. The social media company is seeking to force the Tesla CEO to close the acquisition deal as was agreed by both parties.
Based on a court document seen by Econintersect, the complaint filed in the Delaware Court of the Chancery on July 12 claims that Musk violated the terms of a merger agreement signed by both the Tesla top executive and Twitter.
The complaint also stated that Musk “repeatedly disparaged Twitter and the deal” since signing their merger agreement. In the meantime, the latest development comes moments after Musk terminated the deal to acquire the social media firm for $44 billion, after its initial suspension. Part of the reason for his termination was that Twitter refused to offer information about spam bots on the platform.
Nonetheless, the recent lawsuit said that Musk’s allegations were a ‘pretext’ and without any justifiable merit. An excerpt from the court document reads:
“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.”
In April 2022, Musk acquired a 9.2% stake in Twitter, which was then followed by the billionaire’s appointment to the firm’s board of directors. But, that appointment was short-lived after Musk reversed his decision.Buy Bitcoin Now
Instead, Elon Musk offered to buy Twitter for $44 billion and the company accepted. In the meantime, Twitter’s complaint claimed that Musk has been acting against their deal since the markets started declining.
Based on the lawsuit:
“Rather than bear the cost of the market downturn, as the merger agreement requires, Musk wants to shift it to Twitter’s stakeholders.”