Twitter sued Elon Musk in Delaware on Tuesday for backing out of his $44 billion plan to purchase the social media platform, accusing the world’s richest man of attempting to “trash the corporate, disrupt its operations, destroy stockholder value, and walk away.”
Twitter desires to force Musk to finish the merger at the unique agreed price of $54.20 per Twitter share, in response to the court filing.
“Having mounted a public spectacle to place Twitter in play, and having proposed after which signed a seller-friendly merger agreement, Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to alter his mind, trash the corporate, disrupt its operations, destroy stockholder value, and walk away,” Twitter wrote in a 241-page criticism filed within the Delaware Court of Chancery.
“This repudiation follows a protracted list of fabric contractual breaches by Musk which have forged a pall over Twitter and its business,” the corporate added.
The suit comes after Musk said Friday he was terminating the takeover agreement because Twitter had failed to offer adequate details about fake accounts on the positioning.
Elon Musk was slapped with lawsuit by Twitter after the world’s richest man terminated $44 billion deal to purchase the social media platform. ullstein bild via Getty Images
Twitter once more argued that it had given Musk adequate details about bots. It accused Musk of “using bad-faith pursuit of spam-related evidence to claim a baseless claim of breach [of contract].”
The brand new filing included a screenshot of a poop emoji that Musk posted on Twitter in response to CEO Parag Agrawal’s statements about steps the corporate is taking to crack down on bots. Twitter argued the tweet is certainly one of many examples of Musk “disparaging” Twitter in violation of the deal agreement.
Twitter’s stock was up 1.0% at $34.39 in after-market trading. About an hour after Twitter filed its lawsuit, Musk took to his favorite platform and tweeted: “Oh the irony lol.”
Twitter Chairman Bret Taylor said Twitter was “confident we’ll prevail within the Delaware Court of Chancery.”Bloomberg via Getty Images
“The Street views Twitter as having an iron-fist upper hand based on the merits going into the legal proceedings,” Wedbush Securities managing director Dan Ives told The Post. “Twitter is just not holding back any punches nor should they.”
But the corporate’s low stock price indicates that investors imagine Musk having to pay a settlement or damages is more likely than a Delaware judge forcing him to purchase Twitter, Ives said. He warned that the stock might be in for a wild ride because the legal wrangling potentially drags into 2023.
In an internal memo Tuesday, Twitter’s general counsel told employees that the corporate had “filed a motion for an expedited trial alongside the criticism, asking for the case to be heard in September, because it is critically necessary for this matter to be resolved quickly,” in response to the Latest York Times.
In Friday’s SEC filing, Musk’s lawyers had claimed that “Twitter is in material breach of multiple provisions” of the buyout deal,” and that the corporate “appears to have made false and misleading representations upon which Mr. Musk relied when moving into the Merger Agreement.”
The Tesla CEO’s legal team added that Twitter had unjustifiably ignored and rejected requests for data on how the corporate calculates what percentage of its users are bots. Twitter says the figure is lower than 5%, while Musk has claimed it might be far higher.
Following Musk’s filing on Friday, Twitter Chairman Bret Taylor said the social media firm plans to “pursue legal motion to implement the merger agreement” and was “confident we’ll prevail within the Delaware Court of Chancery.”
In a rebuttal to Musk dated Sunday and filed with regulators on Monday, Twitter denied breaching any obligations of the merger contract.
Twitter has hired corporate law heavyweight Wachtell, Lipton, Rosen & Katz to battle Musk, while Musk has retained Quinn Emanuel Urquhart & Sullivan, a white-shoe firm that has previously represented the Tesla CEO.
Musk and Twitter first announced a $44 billion takeover agreement in April. The terms of the deal require Musk to pay a $1 billion break-up fee if he doesn’t complete the transaction.