13.07.2022, 12:37
Twitter Sues Elon Musk for Backing Out of $44 Billion Deal
Source: OREANDA-NEWS
OREANDA-NEWS Twitter, Inc. is pursuing legal action in response to Elon Musk's decision to not "honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his interest," the social media service said in a Tuesday filing with Delaware's Chancery Court.
The company's 62-page complaint accused Musk of turning the situation into a "public spectacle" and standing in violation of Delaware contract law. The two holdings corporations were created for the sole purpose of the merger. Twitter is arguing that Musk, who owns 9.6% of Twitter stock, falsely asserted "that consummation of the merger depends on the results of his fishing expedition" regarding spam bots.
Musk has repeatedly claimed that his primary issue in the Twitter deal relates to the disclosure of information on spam bots, or fake accounts, on the platform. The billionaire tweeted a preemptive response to the lawsuit on Monday, seemingly celebrating the forthcoming litigation. As of this article's publication, Musk's account has more than 100.9 million followers.The outcome of the monthlong ordeal will likely hinge on the court's interpretation of the 73-page agreement between Musk and Twitter back in April. While Twitter and other major media companies are headquartered in California, it is incorporated in Delaware, which has courts of equity, rather than law. Chancery Court chancellors (judges) have historically dealt with cases of plaintiffs seeking compensation or relief. No juries are assembled.
The company's 62-page complaint accused Musk of turning the situation into a "public spectacle" and standing in violation of Delaware contract law. The two holdings corporations were created for the sole purpose of the merger. Twitter is arguing that Musk, who owns 9.6% of Twitter stock, falsely asserted "that consummation of the merger depends on the results of his fishing expedition" regarding spam bots.
Musk has repeatedly claimed that his primary issue in the Twitter deal relates to the disclosure of information on spam bots, or fake accounts, on the platform. The billionaire tweeted a preemptive response to the lawsuit on Monday, seemingly celebrating the forthcoming litigation. As of this article's publication, Musk's account has more than 100.9 million followers.The outcome of the monthlong ordeal will likely hinge on the court's interpretation of the 73-page agreement between Musk and Twitter back in April. While Twitter and other major media companies are headquartered in California, it is incorporated in Delaware, which has courts of equity, rather than law. Chancery Court chancellors (judges) have historically dealt with cases of plaintiffs seeking compensation or relief. No juries are assembled.
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