The social network accuses the billionaire of having committed a “long list of contractual violations” and wants him to complete the $44 billion transaction.
Twitter has filed a lawsuit against Elon Musk. The social network is suing the world’s richest man for backing out of a billion-dollar deal to buy the company. The lawsuit filed on Tuesday (12) says that Musk set up a “public spectacle” and now believes he can evade contract law, “discarding the company.”
Twitter accuses Musk, who accuses Twitter…
The process does not come as a surprise to those who are following this saga: last Friday (8), the CEO of Tesla sent, through his lawyers, a letter to the SEC, the authority that regulates the financial market in the United States. The documentexpressed its intention to give up the US$ 44 billion deal , referring to the purchase of the microblog.
The reason, according to Musk, is the lack of satisfactory information about bots and spam on the platform. The first signs of withdrawal had already appeared in May. The businessman says that Twitter failed to fulfill its contractual obligations, allegedly ignoring his requests, without justification.
But, in the document presented this Tuesday , Twitter reinforces its defense and classifies Musk’s attitude as “hypocritical”. The company says that the billionaire was the one who committed a “long list of violations”, and that the action is aimed at preventing further breaches of contract.
In practice, Twitter seems to have tired of the comings and goings of the Tesla and SpaceX leader, and wants to force him to complete the deal anyway.
“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, pledging to use his best efforts to complete the deal. Now, less than three months later, Musk refuses to honor his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests. Having put on a public show to put Twitter on the line and having proposed and signed a seller-friendly merger agreement, Musk apparently believes he – unlike all other parties subject to Delaware contract law – is free to change his mind, dispose of the company, stop its operations, destroy shareholder value and walk away.”Twitter, pending in Delaware Court
Employee burnout and company depreciation
In addition to detailing the developments on the negotiation over the last few months, the document presented by Twitter to the Justice says that the agreement with Elon Musk caused attrition of employees and prevented the taking of important decisions , some of them related to talent retention.
In short, the company accuses the richest man in the world of knowingly causing such destabilization. All this together with the “public contempt of the company and its people”.
It is worth remembering that Musk even publicly declared his intention to fire employees if the purchase was completed. Twitter itself recently laid off executives, which made the business even more turbulent.
In response to the announcement about the opening of the process, the billionaire reserved the right to tweet on his official profile: “ Ah, the irony (laughs)” .