Twitter Inc. filed suit against Elon Musk in an effort to get the Tesla CEO to agree to purchase the social media platform for $44 Billion. Twitter claims that Musk repeatedly violated the contract since signing the agreement with the company.
Twitter vs. Elon Musk: The Lawsuit Battle Begins
Twitter Inc. (NYSE. TWTR) filed a lawsuit against Spacex CEO Elon Tesla, and Tesla’s founder for reneging on the purchase of the social media site. The lawsuit, filed in the Delaware Court of Chancery, names Musk and his companies — X Holdings I and X Holdings II — as defendants.
Twitter claims:
Musk has refused to honour his commitments to Twitter and to its stockholders, as the deal he signed is no longer in his best interests.
This lawsuit claims that Musk’s Twitter deal caused the market to fall and Tesla’s value, as well as his personal wealth to drop by $100 billion over the November 2021 peak.
The social media giant further claims that “Since signing the merger agreement, Musk has repeatedly disparaged Twitter and the deal, creating business risk for Twitter and downward pressure on its share price,” stressing that the Tesla CEO’s “exit strategy is a model of hypocrisy” and “a model of bad faith.”
Regarding Musk’s claims that Twitter is in material breach of the agreement, as Bitcoin.com News previously reported, the social media company insisted that “These claims are pretexts and lack any merit.” Twitter elaborated:
Musk on the other hand, has repeatedly broken the merger agreement and opposed this deal from the beginning.
Twitter has been added
We are grateful [the] defendants’ breaches and the uncertainty they have generated, Twitter faces irreparable harm.
The lawsuit states: “Musk and his entities should be enjoined from further breaches, ordered to comply with their obligations to work toward satisfying the few closing conditions, and ordered to close upon satisfaction of those conditions.”
Musk must agree to the purchase of the company’s shares in order to receive relief under the merger agreement.
What do you think is going to win the lawsuit? Twitter or Elon Musk. Comment below to let us know your thoughts.
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