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Twitter is preparing legal action against Elon Musk over his decision to terminate the $44-billion takeover of the microblogging site. The social media giant has hired Wachtell, Lipton, Rosen & Katz LLP and will file its lawsuit in Delaware next week, according to reports.
Bret Taylor, Twitter Chairman, on Saturday, said, “The Twitter board is committed to closing the transaction on the price and terms agreed upon with Musk, and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
Musk is being represented by the law firm Quinn Emanuel Urquhart & Sullivan. On Friday, he announced that he will abandon his $44-billion offer to buy Twitter after the latter failed to provide enough information about the number of fake accounts.
Tesla’s CEO team in a letter wrote that the proportion of spam and fake accounts is “wildly higher” than 5 per cent. “In short, Twitter has not provided information that Mr Musk has requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplify Twitter’s identification, collection, and disclosure of the most relevant information sought in Mr Musk’s original requests.”
Musk reached an acquisition agreement with Twitter in April and had put that on hold in May to allow his team to review the veracity of Twitter’s claim that less than 5 per cent of accounts on the platform are bots or spam. According to a CNN report, Musk alleged that Twitter is “actively resisting and thwarting his information rights” as outlined by the deal, citing the letter he sent to Twitter’s legal head, Vijaya Gadde.
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