Twitter against Elon Musk goes to court. The social media company filed a lawsuit against the world’s richest man on Tuesday, saying it refuses to “honor its obligations” under its agreement and seeks to have it complete the deal. Musk is trying to get out of the $ 44 billion acquisition deal they announced on April 25 based on their claims that Twitter has been unable to meet its requests for information on the activity of the robots and spam on the platform.
“Twitter is filing this action to exclude Musk from further breaches, to compel Musk to comply with its legal obligations, and to compel the consummation of the merger when the few outstanding conditions are met,” Twitter writes in the lawsuit, which to present to the Court of Delaware. of Chancellery where the society is constituted. Catherine Hill, a spokeswoman for Twitter, made no comment beyond the legal filing, while Twitter board chair Bret Taylor noted the filing in a brief tweet.
Twitter has filed a lawsuit in the Delaware Chancellery Court to hold Elon Musk liable for its contractual obligations.
– Bret Taylor (@btaylor) July 12, 2022
The lawsuit shows a picture of Musk doing his best to make an unexpected and unusually generous offer on Twitter, only to turn around almost immediately and start playing with the company and the idea of abandoning his deal. After the market turned around and tech stocks began to plummet, Twitter alleges that Musk sought an escape from the deal, which required a “material adverse effect” or breach of contract. “Musk had to try to conjure up one of them,” the lawsuit states.
That’s where Musk’s argument about Twitter came in with a problem with the spam bot, according to the lawsuit. Despite its concerns, the lawsuit alleges that Musk did not ask Twitter about his spam estimates before the deal was in effect. “It even sweetened its offer,” the lawsuit says, removing a due diligence condition from the deal that would have given it access to non-public information about the company.
Twitter CEO Parag Agrawal has written threads about how the company calculates its estimates of daily active users, and Twitter recently told reporters it blocks 1 million spam accounts every day. In its lawsuit, Twitter cited many of Musk’s own tweets, including his public call for an investigation by the SEC. and the memes Musk tweeted over the weekend.
To fight Musk in court, Twitter has secured the legal services of Wachtell, Lipton, Rosen & Katz, a powerful company with deep connections to the Delaware Chancellery Court and its high-profile corporate hearing history. risk.
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