Twitter vs. Elon Musk is going to the courts. The social media company on Tuesday filed a lawsuit against the world’s richest man, saying he is refusing to “honor his obligations” under his settlement and is demanding him complete the deal. Musk is trying to pull out of a $44 billion acquisition deal announced on April 25 based on his claims Twitter failed to meet his requests for information about bot activity and spam on the platform.
In the lawsuit filed in the Delaware court, Twitter writes, “Twitter seeks to link Musk with further breaches to compel Musk to fulfill its legal obligations and to force termination of the merger upon satisfaction of certain outstanding conditions.” brings for.” Chancery where the company is incorporated. Twitter spokeswoman Katherine Hill did not comment beyond the legal filing, while Twitter board chairman Brett Taylor noted the filing. in a short tweet,
Twitter has filed a lawsuit in the Delaware Court of Chancery to hold Elon Musk accountable for his contractual obligations.
— Brett Taylor (@btaylor) 12 July 2022
The lawsuit paints a picture of Musk making an unexpected and unusually generous offer on Twitter, only to almost immediately turn around and begin messing with the company and their idea of abandoning the deal. After the market rebounded and tech stocks sank, Twitter alleged that Musk sought to avoid deals that required “material adverse effects” or breaches of contract. “Musk had to try to adopt one of them,” the lawsuit says.
According to the lawsuit, Musk’s reasoning about Twitter having a spam bot problem came from here. Despite his concerns, the lawsuit alleges that Musk did not ask Twitter about its spam estimates prior to the settlement. “He also sweetened his offer,” the lawsuit says, by removing a due diligence condition from the agreement that would have given him access to non-public information about the company.
Twitter CEO Parag Agarwal written threads Regarding how the company calculates its estimates of daily active users, Twitter recently told reporters that it blocks 1 million spam accounts every day. In its lawsuit, Twitter cited several of Musk’s tweets, including a 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 Wachtel, Lipton, Rosen and Katz, a powerhouse firm with deep ties to the Delaware Court of Chancery and a history of hearing high-stakes corporate disputes. Is.