Twitter sues Musk for pulling out of $44 billion deal
On July 8, the billionaire waived the buyout worth $ 44 billion. The social network launched yesterday a lawsuit against the boss of Tesla.
Last April, the boss of Tesla announced his intention to buy the social network for an amount of $44 billion. On July 8, Elon Musk decided to retract his decision in an official letter. A judge from a specialized business law court in the state of Delaware will have to determine whether or not the billionaire has the right to terminate the acquisition agreement. This agreement provides for severance payments amounting to one billion dollars.
Twitter accused Elon Musk of acting in bad faith, accusing him of asking for information about the company in order to then accuse them of providing “false statements” about their activities to regulators and investors. The social media network hired two days ago the firm Wachtell, Lipton, Rosen & Katz LLP as their legal representatives, whereas Musk is represented by Quinn Emanuel Urquhart & Sullivan LLP.
On Twitter's final verified complaint, it is stated that Musk "has purported to put the deal on 'hold' pending satisfaction of imaginary conditions, breached his financing efforts obligations in the process, violated his obligations to treat requests for consent reasonably and to provide information about financing status, violated his non-disparagement obligation, misused confidential information, and otherwise failed to employ required efforts to consummate the acquisition."
It also stated that "[Musk] has been acting against this deal since the market started turning, and has breached the merger agreement repeatedly in the process."
Musk responded by posting a meme of himself last Monday on Twitter:
Twitter's complaint alleges that the company "has suffered and will continue to suffer irreparable harm as a result of defendants’ breaches", which "cast a shadow over Twitter and its business."
After hitting its lowest on Wall Street in four months on Monday, the Twitter stock bounced back on Thursday with (+4.32% to $34.06).