Social media platform, Twitter, has sued Elon Musk, accusing him of violating his $44 billion agreement to buy the social media platform.
Twitter filed the suit in Delaware chancery court to get a judgement that would order Musk to conclude the merger at the agreed price of $54.20 per Twitter share.
The lawsuit stated that Musk refused to honor his agreement with Twitter and its shareholders because the deal he signed no longer serves his personal interests.
Recently, Musk said he was ending the deal because Twitter violated the agreement by not responding to requests for information about fake or spam accounts on the platform, which is important to its business performance.
He appeared to have responded to the suit in a recent tweet which read: “Oh the irony lol.”
Twitter’s lawsuit argues: “Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he – unlike every other party subject to Delaware contract law – is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”
The General Counsel of Twitter, Sean Edgett, informed staff of the lawsuit in a recent company-wide memo.
The memo read: “We have also filed a motion for an expedited trial alongside the complaint, asking for the case to be heard in September, as it is critically important for this matter to be resolved quickly.
“At this point we anticipate the next step in the process will be for the court to set a schedule for the case.”
The lawsuit was filed after Musk’s recent announcement of his intent to pull out of the April 25 merger agreement, that specified penalties for backing out of the deal.
The penalties included a $1 billion breakup fee and the ability for the parties to enforce the contract in court, which Twitter officials had earlier vowed to do.
Twitter’s lawsuit will be heard in Delaware chancery court, as both Twitter and the company Musk is using to finalize the merger are formally incorporated in Delaware.
The lawsuit accused Musk of ‘a long list’ of violations of the merger agreement that ‘have cast a pall over Twitter and its business.’
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