In response to Elon musk’s decision to pull out of the 44-billion acquisition deal on Friday, Twitter, one of the world’s biggest social media platforms, has taken legal action. The networking behemoth reportedly hired the law firm, Wachtell, Lipton, Rosen & Katz to sue Musk.
The multi-billionaire claimed his decision was because of Twitter’s failure to provide information about the fake accounts on the platform. Musk, known for his jovial and hilarious memes, posted a meme which summarized scenario.
Reuters claims Twitter opted for the services of Wachtell, Lipton, Rosen & Katz, one of the legal advisers Musk hired in 2018 to take Tesla private. The Chairman of the Twitter Board is pretty confident that they’ll win in the Delaware Court of Chancery. Winning would mean Musk will have to go on with the price and terms agreed on the deal.
In May, a Twitter shareholder complained in California that the CEO of Tesla dropped stock prices by tweeting about spambots on the app so he could renegotiate the acquisition price.
According to Business Insider, after Friday media reports of Musk’s impromptu decision to pull out, Twitter stocks dropped by 4% in pre-markey trading.
In June, a Twitter spokesperson shared that contrary to Musk’s accusations, the company is not withholding information.
“Twitter has and will continue to cooperatively share information with Mr Musk to consummate the transaction in accordance with the terms of the merger agreement. We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement at the agreed price and terms,” the spokesperson said.
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