Twitter Has Sued Elon Musk for Balking at AU$61 Billion Buyout
Twitter is accusing Musk of acting in bad faith
It has finally happened. Twitter has decided to sue Elon Musk for balking at the AU$ 61 billion buyout of the social media platform. The Tesla CEO has been trying to break the agreement to buy the technology company. The lawsuit by Twitter accuses the founder of The Boring Company of acting in bad faith. The lawsuit against Musk comes a few days after he sent a letter to the social media company in which he made it clear that he wanted to terminate the US$ 44 (AU$ 61) billion acquisition deal that was made in late April.
Twitter sues Elon Musk for attempting to abandon acquisition.
In a 62-page lawsuit filed in Delaware court on Tuesday, Twitter lashed out at the SpaceX CEO and alleged that he “refuses to honour his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interest.” It also accused Musk of mounting a “public spectacle” around the deal and said it was suing Musk to compel him to fulfill his legal obligations and close the deal.
The lawsuit reads, “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. This repudiation follows a long list of material contractual breaches by Musk that have cast a pall over Twitter and its business.”
Musk shared its intention to buy the company for US$ 54.20 (AU$ 75) per share in April. It would have cost him around US$ 44 (AU$ 61) billion if the deal went through. Since then, the shares of Twitter have plunged, and the billionaire has tried to break the deal. Musk even expressed concerns about bots. But Twitter provided him with more data.
The suit reads, “Musk wanted an escape. But the merger agreement left him little room. With no financing contingency or diligence condition, the agreement gave Musk no out absent a Company Material Adverse Effect or a material covenant breach by Twitter. Musk had to try to conjure one of those.”
No one was surprised when Twitter filed the suit. The board chairperson Bret Taylor said the company would “hold Elon Musk accountable to his contractual obligations.”
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