New York Times correspondent Kate Conger tweeted a photo of the lawsuit, saying the Tesla billionaire “refused to meet his obligations” because “the deal he signed no longer serves his personal interests”.
Mr Musk initially reached a deal to buy Twitter on April 25 this year, with his offer to buy all of their shares for $54.20 (£45.59) each.
However, a dispute arose after Mr Musk accused Twitter of lying about the number of bots and spam accounts on their site.
The nature of the action reads: “In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to do his utmost to complete the deal.
Now, less than three months later, Musk is refusing to honor his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests.
Musk apparently believes that—unlike any other party subject to Delaware contract law—he is free to change his mind, destroy the company, disrupt operations, destroy shareholder value, and walk away.”
Twitter is suing him in the Chancery Court in Delaware to try to force him to abide by the agreement.
The court will now decide whether Mr Musk had the right to walk away, given Twitter’s alleged failure to provide him with the information requested, or whether he is still tied to the deal.
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