Elon Musk, who just canceled the agreement to buy the social media behemoth, is being sued by Twitter.
Twitter, a massive social media platform, has sued Tesla and SpaceX CEO Elon Musk in an effort to pressure the billionaire to finalize the acquisition agreement as agreed upon.
The case, which was submitted to the Delaware Court of the Chancery on Tuesday (July 12, 2022), claims that Musk broke the conditions of a merger agreement that was signed by the CEOs of Twitter and Tesla.
Since signing the merger agreement, Musk has allegedly “repeatedly disparaged Twitter and the arrangement.”
The most recent development happened not long after Musk suspended the $44 billion bid to buy the social media giant following an earlier suspension. Twitter’s refusal to divulge information on spam bots was one of the factors contributing to the termination.
Musk’s allegations, according to the most recent complaint, were a “pretext” and unfounded. According to a court document, 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” after mounting a public spectacle to put Twitter in play and proposing and signing a seller-friendly merger agreement.
Musk bought a 9.2 percent interest in Twitter back in April, and the firm then added the billionaire to its board of directors. The position was temporary, though, since Musk later changed his mind.
Instead, the corporation accepted the Tesla CEO’s $44 billion bid to purchase Twitter. Twitter’s complaint, meanwhile, claimed that Musk has been working against the merger since since the stock market started to fall.
The complaint claims that Musk “wants to transfer the expense of the market decline to Twitter’s stakeholders rather than absorb the cost of the market downturn, as the merger agreement mandates.”