Twitter is assembling a high-profile legal team to sue Telsa CEO Elon Musk for terminating his $44 billion deal to purchase the platform, in keeping with a report on Sunday.
Bloomberg News said that the social media giant goals to file suit against Musk — who backed out of the planned takeover on Friday — early this week in Delaware where the corporate’s corporate home lies.
Twitter has hired the law firm Wachtell, Lipton, Rosen & Katz, which is thought for its work in mergers.
If successful, the social media company could force Musk to pay a $1 billion breakup fee, in keeping with the report.
Musk backed out of the deal after Twitter failed to supply details about fake accounts on the platform, court documents filed by his team claimed.
His attorneys alleged in a Friday court filing 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 stepping into the Merger Agreement.”
The Tesla boss has retained Quinn Emanuel Urquhart & Sullivan, a high-profile firm that he’s worked with before, in keeping with Bloomberg.
Elon Musk terminated his $44 billion deal to purchase Twitter, saying that the social media company had failed to supply details about fake accounts on the platform.Win McNamee/Getty Images
If successful, Twitter could force Musk to pay a $1 billion breakup fee, in keeping with the report.Justin Sullivan/Getty Images
The case is more likely to be tried in a chancery court, where a judge who’s an authority in business law will hear arguments with no jury.
The deal’s collapse got here after a drawn-out saga. Following the April news that Musk secured a $44 billion deal to take over Twitter, he put the buyout on hold until the social media company proved that spam and bot accounts were fewer than 5% of users who see promoting on the location.
Insiders speculated that Musk reneged on the deal because he’s now paying a large premium for the corporate consequently of the tech stock correction.