Twitter Sues Elon Musk for Pulling Out of $44 Billion Buyout Deal

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Social media giant Twitter has filed a lawsuit against Tesla and SpaceX CEO Elon Musk, seeking to force the billionaire to close the acquisition deal as agreed by both parties.

• According to court documents, the complaint filed in the Delaware Court of the Chancery on Tuesday (July 12, 2022) alleges that Musk violated the terms of a merger agreement signed by both Twitter and the Tesla CEO.
• The complaint stated that Musk “repeatedly disparaged Twitter and the deal” since signing the merger agreement.
• Meanwhile, the latest development comes shortly after Musk terminated the deal to purchase the social media company for $44 billion, after an initial suspension. Part of the reason for the termination was that Twitter refused to provide information relating to spam bots.
• However, the recent lawsuit stated that Musk’s claims were a “pretext” and without 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.”

• Back in April, Musk purchased a 9.2% stake in Twitter, followed by the billionaire’s appointment to the company’s board of directors. The appointment was, however, short-lived after Musk reversed his decision.
• Instead, the Tesla CEO offered to buy Twitter for $44 billion, which the company accepted. Meanwhile, Twitter’s complaint alleged that Musk has been acting against the deal since the markets started declining.
• According to 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.”

OhNoRipple via https://www.ohnocrypto.com/ @Anthonia Isichei, @Khareem Sudlow