Twitter has filed a lawsuit against Tesla CEO Elon Musk, who announced on the 12th (local time) that it would unilaterally abandon the acquisition deal.
According to the Wall Street Journal (WSJ), Twitter filed a complaint with the Delaware Equity Court on the same day that Musk should take over Twitter as the two sides had originally agreed.
Twitter announced on the 8th that it would file a lawsuit immediately after Musk notified that it wanted to break the deal.
“Unlike everyone else who has to abide by Delaware’s contract laws, Musk appears to believe he has the freedom to step down after changing his mind, hurting Twitter, disrupting the company’s operations, and destroying shareholder value,” Twitter said in the complaint. , held Musk responsible.
Musk argued that the reason for the change in his stance on Twitter’s acquisition was the decline in personal fortune following the decline in Tesla’s stock price. The fake account on Twitter (spambot) that Musk is taking issue with is only an excuse to break the contract.
The company also wrote in the complaint that Musk repeatedly denigrated the deal with Twitter after signing the merger agreement and caused the company to pose a business risk and lower the stock price. Musk said he had violated an agreement not to publicly insult Twitter executives and had neglected to secure debt for the acquisition.
Twitter has filed an expedited trial in the case. In an internal memo sent to employees on the same day, Twitter legal adviser Sean Edgett said the case was urgency and requested a hearing in September. If the request is granted, the process, which would normally take years, is expected to be reduced to months.
Legal experts say Twitter appears to have a legal edge in the case, but they see no way to enforce it if Musk refuses to take over Twitter, the WSJ reported.