After threatening to sue last week, Twitter follows through and files a lawsuit against Elon Musk
Twitter, the social media giant, has filed a lawsuit against Elon Musk over his pullout from a deal to purchase the company.
From the Epoch Times:
“Rather than bear the cost of the market downturn, as the merger agreement requires, Musk wants to shift it to Twitter’s stockholders,” Twitter’s lawyers wrote on Tuesday. “Since signing the merger agreement,” the suit alleged, “Musk has repeatedly disparaged Twitter and the deal, creating business risk for Twitter and downward pressure on its share price.”
The lawsuit was filed in the Delaware Chancery Court.
“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 from Twitter further alleged.
And it added that “Twitter also negotiated for itself a right to hire and fire employees at all levels, including executives, without having to seek Musk’s consent” while claiming the Tesla CEO “refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
Twitter also references some of Musk’s Tweets as evidence that he was working to violate the contract.
Elon Musk initially announced his intentions to purchase Twitter in April of 2022, however cited massive numbers of “bots” on the website when putting the deal on hold in May. Citing the same issue, as well as others, Elon Musk walks away from the deal on July 8th.
In retaliation, Twitter is suing Musk to complete the full $44 billion purchase.
Elon Musk has not yet publicly commented on the lawsuit.
Twitter shares are down 35% in value since Musk’s April announcement.