Twitter sues Elon Musk to hold him to $44 Billion deal

Twitter sues Elon Musk to hold him to $44 Billion deal

Twitter filed a case against business magnate Elon Musk to hold him to his $44 billion deal to buy the company. The thorn in the deal was, according to Musk, Twitter’s failure to provide information, as requested, verifying the number of spam accounts on their platform and continuing business as usual by laying employees off. 

Bret Taylor, Twitter’s board chairman, announced that they were suing Elon Musk after his lawyer’s letter got public. Shortly after, the company proceeded to file a complaint in the Delaware Court of Chancery.

The company has accused Musk of helping drive Twitter’s market share down by publicly criticizing the company. They alleged that Musk has treated the company and his proposed deal as a joke and his numerous tweets on the subject are proof. He further disparaged the company by calling on the SEC to investigate Twitter’s span disclosure.

According to Twitter, it was Musk who failed to attend a meeting scheduled by Twitter to discuss spam accounts. When Twitter CEO, Parag Agrawal, and CFO, Ned Segal, scheduled a meeting during June, Musk failed to attend. Upon rescheduling, his team chose to discuss ‘the pro forma financials for the debt’ instead of spam accounts. Twitter tried to reschedule a meeting concerning the same, but Musk did not take out time to attend the meeting.

Twitter claims that Elon Musk was aware of the problem with spam accounts on the platform well before he made it into a point of contestation, but only took issue with it once the market shares started to decline for Twitter. Instead of bearing the financial burden, Musk began to step back from the deal, taking issue with spam accounts and employee layoffs.

Responding to claims made by Musk’s lawyer that firing employees is a potential breach of the contract, the company said that the provision regarding hiring or firing employees above the Vice President level was successfully dropped from the contract prior to signing.

Musk as a response to this allegation filed a sealed countersuit against Twitter.

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