The lawsuit accuses Musk of a “long list” of breaches of the merger agreement.
After attempting to back out of his $44 billion takeover of Twitter, Elon Musk is facing legal hurdles as the platform attempts to force his hand.
The 51-year-old tech-mogul announced on Friday that he would no longer be purchasing Twitter after solidifying the deal earlier this year.
Musk says the social network company did not provide sufficient information regarding the number of fake and spam accounts on the platform.
Now, Twitter has hit back and filed a lawsuit against the Tesla CEO.
“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, [Mr] 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,” the lawsuit, filed in Delaware, reads.
The lawsuit accuses Musk of a “long list” of breaches of the merger agreement and argues that he backed out of the deal as it “no longer serves his personal interests”.
Twitter chairman Bret Taylor tweeted that the platform wanted “to hold Elon Musk accountable to his contractual obligations.”
Twitter has filed a lawsuit in the Delaware Court of Chancery to hold Elon Musk accountable to his contractual obligations.
— Bret Taylor (@btaylor) July 12, 2022
In response, Musk tweeted on Tuesday: “Oh the irony lol.”
“The value of Mr Musk’s stake in Tesla, the anchor of his personal wealth, has declined by more than $100bn from its November 2021 peak. So [Mr] Musk wants out,” the lawsuit added.
“Rather than bear the cost of the market downturn, as the merger agreement requires, [Mr] Musk wants to shift it to Twitter’s stockholders.”
Oh the irony lol
— Elon Musk (@elonmusk) July 12, 2022
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