Twitter Inc. sued Elon Musk on Tuesday for breaching a $44 billion deal to buy the social media platform and asked a Delaware court to order the richest man in the world to complete the merger at the agreed price of $54.20 per Twitter share,
KYIV. UkraineGate. 13. July . 2022 | Society .
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“Apparently, Musk believes that he — unlike any other party subject to Delaware contract law — is free to change his mind, wreck the company, disrupt its operations, destroy shareholder value, and walk away,” the complaint said.
Details
The lawsuit accuses Musk of a “long list” of violations of the merger agreement that “cast a shadow over Twitter and its business.” It says for the first time that the outflow of personnel “increased” after the announcement of the deal.
Twitter also accused Musk of “secretly” stockpiling the company’s stock between January and March without properly disclosing his material purchases to regulators, and said he “instead continued to stockpile Twitter stock without paying attention to the market.”
In a separate statement, Twitter asked the court to set a four-day trial for mid-September.
The lawsuit sets in motion what promises to be one of the biggest legal battles in Wall Street history, involving one of the business world’s brightest entrepreneurs, the publication notes.
Addition
On Friday, Musk, who is CEO of electric car maker Tesla Inc., said he was terminating the deal because Twitter had violated it by failing to respond to requests for information about fake or spam accounts on the platform, which is critical to the effectiveness of its business
Shares of the social media platform closed at $34.06 on Tuesday, up 4.3%, but well below the above $50 level they were trading at when the deal was approved by Twitter’s board of directors in late April. Shares added another 1% after the bell.
Shares of Tesla, the main source of Musk’s fortune, have lost about 30% of their value since the deal was announced and closed Tuesday at $699.21.
Source: Ukrgate
