BREAKING NEWS: Twitter is suing Elon Musk for refusing to ‘meet his obligations to the company and shareholders’ after he terminated a $44 billion acquisition deal
Twitter has sued Elon Musk for violating its $44 billion agreement to buy the social media platform.
The charges filed on Tuesday asked a Delaware court to order the world’s richest person to complete the merger at the agreed-upon $54.20 per Twitter share, according to a court filing.
“After putting on a public spectacle to bring Twitter into play, and after proposing and signing a seller-friendly merger agreement, Musk apparently believes he—unlike any other party subject to Delaware contract law—is free. to change your mind, disrupt the company, its operations, destroy shareholder value and walk away,” the lawsuit said.
On Friday, Musk said he ended the deal because Twitter violated the agreement by not responding to requests for information about fake or spam accounts on the platforms, which is fundamental to his business performance.
Twitter has sued Elon Musk for violating his $44 billion deal to buy the social media platform
Twitter sued the Delaware Chancellery on Tuesday
Twitter’s General Counsel Sean Edgett briefed staff about the lawsuit in a company-wide memo Tuesday afternoon.
“In addition to the complaint, we have also filed a request for an expedited trial, requesting that the case be heard in September, as it is critical that this case is resolved quickly,” Edgett wrote in the memo, according to the New York City executive. newspaper The New York Times. Time.
“At this point, we expect the next step in the process will be for the court to establish a timetable for the case,” he added.
The lawsuit was a long-awaited move after Musk announced his intention to withdraw from the April 25 merger agreement, which specified sanctions for withdrawing from the deal.
Musk argues that Twitter has breached its contractual obligations by not disclosing information about fake accounts on the platform.
But it’s unclear whether the courts will sympathize with his argument. In the past, courts have forced potential buyers to honor signed merger agreements, although the facts differ in each case.
The case will be heard in the Delaware Chancellery, as both Twitter and the company Musk uses to complete the merger are officially incorporated in Delaware.
Story in development, more to come.