Twitter Sued Elon Musk Over his $44-Billion Takeover Deal

Technology

Twitter has sued Elon Musk, CEO of Tesla after he decided to back out of the 44 billion dollars takeover deal. According to the reports, the lawsuit was filed in Court of Chancery of Delaware accusing musk of hypocrisy.

In the lawsuit, Twitter wrote, the company brings this action to enjoin Elon Musk from any further breaches, to compel him to fulfill his legal obligations, and to compel consummation of the takeover upon satisfaction of the few outstanding conditions.

This lawsuit marks the beginning of what can be a protracted legal fight as Twitter is seeking to hold Elon Musk to his deal for paying 54.20 dollars per share for the company.

Elon Musk has announced the termination of a 44 billion dollar purchase of Twitter in a letter sent by the team of Elon Musk to the company last week. Elon Musk has decided to suspend the deal because of multiple breaches of the purchase agreement.

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Although, Elon Musk has put the deal on hold in May 2022 to allow his team to review the claim of Twitter that less than 5 percent of the accounts on Twitter platform are spam or bots.

Elon Musk has alleged that Twitter is actively resisting and thwarting the information rights as highlighted by the deal, and he has also demanded that twitter should turn over information about the company’s testing methodologies to support its claims that spam accounts and bots constitute less than 5 percent of the active user base of the company.