TWITTER Files a Lawsuit against Elon Must for canceling a $44 Billion Deal
Elon Musk is being sued by Twitter for pulling out of a $44 billion transaction. On Tuesday, the company filed an action against him in the Delaware Court of Chancery after it became clear that he was withdrawing from the deal- saying he wanted to remain focused on Tesla.
Twitter filed a lawsuit against Elon Musk, citing the validity of his tweets when he agreed to buy out Tesla.
Tesla CEO Elon Musk has been postponing finalizing the acquisition of Twitter Inc. since April, claiming issues with Twitter’s end – he alleges that the company does not disclose enough information about how many bots or spam accounts there are on the platform. Musk obviously believes that he is free to alter his mind, trash the company and disrupt its operations at will- destroying investors’ value in doing so- then abandon it altogether.
Twitter added a clause in the agreement Musk signed earlier this year that allows them to file suit against him if his financing is lined up.
According to the Twitter complaint, Mr. Musk intends to withdraw from this agreement because Tesla’s stock has declined since then and he believes that dealing with bots on Twitter is merely an excuse.
According to the lawsuit, Musk broke his promise and publically disrespected Twitter officials, which he had agreed not to do. He also stopped trying hard enough to raise funds for buying the company.
There are various reasons why it was thought that Elon Musk quit his position on Twitter. One of these reasons is because the market crashed and affected his profit margins, thereby making the fixed price agreement less lucrative. Another reason was that he publicly criticized those who were part of the company in which he had just agreed to invest only a few days ago.