Wilmington: Twitter Inc has filed a lawsuit against Elon Musk for allegedly breaking the terms of his $44 billion agreement to purchase the social media platform, and has requested that a Delaware court order the world’s richest man to consummate the merger at the agreed-upon $54.20 per Twitter share.
The complaint stated that Musk “appears to assume that, unlike every other party subject to Delaware contract law, he is free to change his mind, trash the firm, disrupt its operations, destroy stockholder value, and walk away.”
The lawsuit launches what is anticipated to be one of the largest legal showdowns in the history of Wall Street, featuring one of the most colourful businessmen in a case that will hinge on staid contract wording.Musk announced the termination of the partnership on Friday, claiming that Twitter had broken the terms of the agreement by refusing to provide information about phoney or spam accounts on the platform, which is essential to the operation of the company.
The top executive of Tesla Inc.’s electric vehicle division, Musk, did not immediately return a call for comment.
The lawsuit said that Musk has broken “a long number” of merger agreement provisions, which “have put a shadow over Twitter and its business.” For the first time, it claimed that since the announcement of the agreement, staff attrition had been “on the uptick.”