Twitter sues Elon Musk after attempt to terminate purchase
(The Hill) – Twitter on Tuesday sued Elon Musk to force the Tesla CEO to complete his $44 billion acquisition of the social media platform.
Musk on Friday said he was terminating the agreement because Twitter hadn’t given him enough information on bots on the platform.
A judge in the business specialized Delaware Chancery Court will now determine whether his reasons for exiting the binding contract are legitimate.
If not, Musk could be compelled to complete the purchase at the $54.20 price point he offered in April.
Musk’s team made three arguments for why they believe the agreement has been violated: that Twitter did not share sufficient information about bots, that its statements about bots are wrong and the truth lowers the company’s value and that it broke an agreement by terminating two executives.
“These claims are pretexts and lack any merit,” the lawsuit filed Tuesday argues. “Musk, by contrast, has been acting against this deal since the market started turning, and has breached the merger agreement repeatedly in the process.”
The lawsuit alleges that Musk’s arguments about bots to justify terminating the deal are “a model of hypocrisy.”
“One of the chief reasons Musk cited on March 31, 2022 for wanting to buy Twitter was to rid it of the ‘[c]rypto spam’ he viewed as a ‘major blight on the user experience,’” it reads. “But when the market declined and the fixed-price deal became less attractive, Musk shifted his narrative, suddenly demanding ‘verification’ that spam was not a serious problem on Twitter’s platform, and claiming a burning need to conduct ‘diligence’ he had expressly forsworn.”
— Updated at 5:19 p.m.