Twitter Inc. has filed suit against Elon Musk to force the Tesla CEO to fulfill his $44 billion contract to acquire the social media platform. Twitter claims that Musk has repeatedly violated the agreement since signing the deal with the company.
Twitter v. Elon Musk: Lawsuit Battle Begins
Twitter Inc (NYSE: TWTR) has filed alawsuit alleging that Tesla and Spacex CEO Elon Musk backed out of a deal to acquire the social media platform. The lawsuit, filed in Delaware state court, names Musk and his companies, X Holdings I and X Holdings II, as defendants.
Musk has refused to fulfill his obligations to Twitter and its shareholders because the deal he signed no longer benefits him personally.
The lawsuit explains that after Musk signed the deal with Twitter, the market fell and the value of Tesla’s stock, and thus his personal wealth, fell by more than $100 billion from its peak in November 2021.
The social media giant further claims that “since signing the merger agreement, Musk has repeatedly undermined the deal with Twitter, creating business risk and downward pressure on Twitter’s stock price,” and emphasizes that the Tesla CEO’s “exit strategy is a model of hypocrisy” and “malice.”
As for Musk’s claims that Twitter is in material breach of contract, as Bitcoin.com News previously reported, the social media company claimed that “these claims are pretextual and have no merit.” Twitter elaborated.
In contrast, Musk has been acting against the deal since the market began to turn, violating the merger agreement several times in the process.
Because of (Defendants’) breaches and the uncertainty they caused, Twitter faces irreparable harm.
The lawsuit states:” Mask and its entities should be enjoined from further violations, ordered to comply with their obligation to work toward the satisfaction of several closing conditions, and ordered to close after those conditions are satisfied.”
The social media giant seeks relief to the extent permitted under the merger agreement and an order compelling Musk to go through with the acquisition transaction.
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