Twitter announced on Tuesday that it had filed a lawsuit against Elon Musk to compel him to finish the $44 billion purchase of the social media giant.
Since the billionaire announced on Friday that he was cancelling his April agreement to buy the firm, Musk and Twitter have been preparing for a legal battle.
Twitter’s board has filed a lawsuit in the Delaware Court of Chancery, according to the company’s chair, Bret Taylor, in an effort to “hold Elon Musk accountable to his contractual commitments.”
In the opening paragraph of its complaint, Twitter accuses Musk severely of refusing to uphold his duties to the company and its owners because the agreement he signed “no longer serves his personal interests.”
According to the lawsuit, Musk “appears to believe 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” after mounting a public spectacle to put Twitter in play and proposing and later signing a seller-friendly merger agreement.
Business conflicts between the numerous corporations, like Twitter, that are incorporated in Delaware are typically handled by the trial court there.
Elon Musk claimed on Friday that Twitter has not given out enough data regarding the number of phoney accounts using its service. Last month, Twitter announced that it was giving Musk access to a “fire hose” of unprocessed data on hundreds of millions of tweets each day.
The corporation has stated in regulatory papers for years that it thinks 5% of the platform’s accounts are phoney. Twitter sacked two of its top managers and laid off a third of its talent acquisition team, according to Musk, who also claims that this violated the acquisition agreement.
On Tuesday, Twitter CEO Bret Taylor tweeted about the case.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
Taylor, who also serves as co-CEO of Salesforce, a provider of cloud-based software, declared: “Twitter has filed a lawsuit in the Delaware Court of Chancery to hold Elon Musk accountable to his contractual responsibilities.
Musk later tweeted “Oh the irony lol,” which seemed to be a reference to the case.
Twitter’s stock price as of Tuesday afternoon was a little over $34 per share, down from Musk’s offer price of $54.20 per share in April.