Twitter sues Elon Musk to demand that he comply with the purchase agreement for 44,000 million

Action and reaction, a phenomenon now common in this matter.

Thomas Osborne
Thomas Osborne
16 July 2022 Saturday 23:18
13 Reads
Twitter sues Elon Musk to demand that he comply with the purchase agreement for 44,000 million

Action and reaction, a phenomenon now common in this matter. Twitter filed a lawsuit against Elon Musk in the Delaware court on Tuesday, specializing in corporate disputes, to force the tycoon to execute the purchase of the company for 44,000 million dollars. The micromessaging company accuses the owner of Tesla of breaking the pact reached last April, which is causing its share price to plummet.

In a letter addressed to the SEC -the local National Securities Market Commission-, Musk indicated a few days ago that he was about to withdraw his offer on the grounds that Twitter has violated that pact by refusing to offer all the information about false accounts and bots that count as real users.

The company has already responded that things were not going to stay that way and their intention is to go beyond the penalty of 1,000 million dollars that they established in their agreement.

“Having put on a public spectacle to put Twitter on the line, and signing an amicable buy-sell agreement, Musk apparently believes that, unlike all other parties subject to Delaware contract law, he is free to change his mind. , which is free to screw up a company, distort operations and destroy shareholder values,” Twitter noted.

In addition, among the allegations of this company is that Musk soon changed his mind when observing worsening market conditions, which directly affected the decline of his personal fortune by more than 100,000 million dollars since the peak of November 2021. Instead of bearing the cost of the recession, as required by the merger agreement, Musk wants to make it fall on shareholders. And it was nuanced that "Musk repeatedly disparaged Twitter and the pact since the signing of the agreement, creating a risk for Twitter's business and causing pressure on the share price."

Before announcing the termination of the agreement, Musk made several dalliances in which he threatened to make that decision. Many analysts pointed out that his intention was none other than to pave the way to back down in view of the bad influence of the pact on his business and get out of the matter unscathed, without paying any penalty.

Twitter asked the court for an accelerated resolution in September, so that the lawsuit is closed as soon as possible and the two parties arrive in time for the closing of the agreement, set for October 2024. The forecast is that Musk responds in the meantime with a against demand.

In the end, the court can side with Twitter and force Musk to make the acquisition or it can simply release the tycoon from his obligation, or both contenders can reach an agreement outside the judicial framework that could end the platform in the hands of Musk or not.

Lawyers for the social network stressed in a letter, made public Monday, that Musk's intention to abandon the transaction was worthless and wrong. They also stressed that the company has not broken any of its obligations, as the tycoon accused them.

In their lawsuit, Twitter's lawyers reiterated that the agreement is not finalized, that the banking and capital commitments remain in force and require Musk to fulfill his obligations. "Twitter reserves all contractual and legal rights, including the specific right to bind Musk to the agreement," they stated.

They argued that the company has collaborated with the buyer according to the principles of the merger, giving Musk access to the data of the tweets sent daily.