Elon Musk Reacts to Twitter Lawsuit Over Breach of $44 Billion Deal: All Details

The lawsuit marks the beginning of what could be a protracted legal battle as Twitter seeks to hold Elon Musk to his deal to pay $54.20 (roughly Rs. 4,300) per share for the company.

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By Press Trust of India | Updated: 13 July 2022 13:25 IST
Highlights
  • The lawsuit was filed in Delaware's Court of Chancery on Tuesday
  • Musk had openly accused Twitter of breaching the merger agreement
  • Musk ridiculed Twitter for initiating a legal battle

Lawsuit marks beginning of what could be a legal battle as Twitter seeks to hold Musk to his deal

Tesla CEO Elon Musk was quick enough to react to a lawsuit filed against him by Twitter for breaching the $44 billion (roughly Rs. 3,37,465 crore) contract.

Minutes after news surfaced online that Twitter has sued him, Musk took to the microblogging site and just simply tweeted, "Oh the irony lol."

Without mentioning anything about the lawsuit, It's somehow clear that Musk has referred to the ongoing controversy, especially considering that, back in April, Twitter reportedly did not even want to go through with the deal.

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As per The Verge, the lawsuit was filed in Delaware's Court of Chancery on Tuesday, accusing Musk

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"Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions," Twitter wrote in the lawsuit.The lawsuit marks the beginning of what could be a protracted legal battle as Twitter seeks to hold Musk to his deal to pay $54.20 (roughly Rs. 4,300) per share for the company.

Twitter, which is being repped by M&A powerhouse law firm Wachtell, Lipton, Rosen & Katz, alleged that Musk looked for an escape from the deal, which required a "material adverse effect" or breach of contract.

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"Musk had to try to conjure one of those," the lawsuit stated.

Musk announced the termination of a $44 billion (roughly Rs. 3,37,465 crore) Twitter purchase deal in a letter sent by Musk's team to Twitter last week. Musk decided to suspend the deal due to multiple breaches of the purchase agreement.

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In April, Musk reached an acquisition agreement with Twitter at $54.20 (roughly Rs. 4,300) per share in a transaction valued at approximately $44 billion (roughly Rs. 3,37,465 crore). However, Musk put the deal on hold in May to allow his team to review the veracity of Twitter's claim that less than 5 percent of accounts on the platform are bots or spam.

Back in June, Musk had openly accused the microblogging website of breaching the merger agreement and threatened to walk away and call off the acquisition of the social media company for not providing the data he has requested on spam and fake accounts.A few days ago, Musk ridiculed Twitter for initiating a legal battle to force him to purchase the company. Musk tweeted four images of him laughing, "They said I couldn't buy Twitter. Then they wouldn't disclose bot information. Now they want to force me to buy Twitter in court. Now they have to disclose bot information in court."


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Further reading: Elon Musk, Tesla
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