San Francisco, July 13: With an aim to force Elon Musk to follow through with his $44 billion Twitter acquisition deal, the microblogging site has now sued the tech billionaire as he walked out of the deal. The lawsuit, filed in the Delaware Court of Chancery this week, comes after the Tesla and SpaceX CEO said that he wants to terminate the $44 billion acquisition agreement.
“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to use his best efforts to get the deal done. Now, less than three months later, Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests,” the complaint reads. Twitter Hires Top Legal Firm to Sue Elon Musk for Ending $44 Billion Takeover Deal.
“Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” it added.
“Oh the irony lol,” Musk tweeted Shortly after news of the suit was filed. Last week, Musk officially pulled out of his $44 billion agreement to purchase the microblogging site.
In a filing on Friday afternoon with the US Securities and Exchange Commission (SEC), Musk’s team claimed he is terminating the deal because Twitter was in “material breach” of their agreement and had made “false and misleading” statements during negotiations.
A recent report indicated that Twitter lawyers from Wachtell, Lipton, Rosen & Katz law firms were preparing for a long-drawn court battle after Musk filed paperwork with the US SEC to exit the acquisition deal. Meanwhile, shares of the microblogging site fell about 6 per cent in premarket trading on Monday, amid the recent walkout by Musk.
(The above story first appeared on Morning Tidings on Jul 13, 2022 10:13 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).
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