As anticipated a few days ago, Twitter sued Elon Musk for refusing to fulfill its obligations to acquire the company. The social network sued to the tycoon in a Federal Court of the state of Delaware, assuring that Musk put on a public show to buy Twitter and after signing a favorable merger agreement has changed his mind
The lawsuit claims that Elon Musk’s rejection joins a long list of contractual breaches that have tarnished Twitter and its business.
Twitter is bringing this action to ban Musk from further violations, to force Musk to comply with his legal obligations, and to compel consummation of the merger upon satisfaction of the few remaining conditions.
The lawsuit specifies that, after the signing of the purchase agreement, the stock market suffered a fall. This caused Elon Musk to lose more than $100 billion of the value of his shares in Tesla. The company cites that instead of bearing the cost of the market downturn, Musk wants to pass it on to Twitter shareholders.
The company claims that, contrary to the actions expected of a future owner, Elon has shown a disdain for Twitter and has repeatedly belittled it. The strategy of bombarding the deal with inflammatory tweets has created a business risk for the company and its stock.
Elon Musk’s strategy against Twitter is a model of bad faith
An important section in the lawsuit exposes what many analysts have been reporting for weeks. Twitter mentions that Elon Musk’s strategy is a model of bad faith. While he pretends to exercise his right to information to complete the purchase, the tycoon tries to prove that Twitter has lied about his business to regulators and investors.
The latter is related to accusations that more than 5% of Twitter users are spam bots. Elon Musk has stated on multiple occasions that the company has not told the truth about this and that the excess of false accounts would be a reason to break the agreement.
The lawsuit points out that Elon Musk’s reasons for canceling the purchase agreement are pretexts and lack merit.
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