Twitter sues Elon Musk after the $44,000 million purchase agreement collapsed

Twitter is suing Elon Musk for breach of contract, according to court documents (Reuters/Dado Rovich)

Twitter Inc sued Elon Musk on Tuesday for breaching a $44 billion deal to buy the social media platform, and A Delaware state court has been asked to order the world’s richest person to complete the merger at an agreed-upon price of $54.20 per Twitter share.according to the court filing.

Having made a public offer to put Twitter to the test, and after proposing and then signing a seller-friendly merger agreement, Musk appears to believe that – unlike any other party subject to Delaware contract law – he is free to change his mind, destroy the company, halt operations, destroy shareholder value, and walk away.”states the lawsuit.

Musk had announced that on Friday Terminated the agreement because Twitter You violated it by not responding to requests for information about fake accounts or spamming on the platforms, which is critical to their functioning.

Twitter Chairman Brett Taylor tweeted on Tuesday that a lawsuit has been filed in Delaware Judicial Court “to that Elon Musk is fulfilling his contractual obligations.”

The lawsuit urges the court to order the billionaire to complete his Twitter purchase agreement, arguing that no amount of monetary compensation can repair the damage he caused. The lawsuit warns that “Musk’s behavior simply asserts that he wants to escape the binding contract that he freely signed, and harms Twitter in the process.” “Twitter has suffered and will continue to suffer irreparable harm as a result of the defendants’ abuse.”

The Delaware District Court frequently handles commercial disputes between several companies, including Twitter, which are incorporated there.

Twitter shares rose slightly in after-market trading when the news broke.

Elon Musk said he canceled his Twitter purchase for not providing all the information he requested
Elon Musk said he canceled his Twitter purchase for not providing all the information he requested

The contract signed in April calls for Musk to pay Twitter $1 billion if it is unable to complete the deal for financial or regulatory reasons. however, Breakdown fees will be waived if the holder terminates the deal on their own.

Musk had threatened to block the deal unless the company showed evidence that spam and bot accounts account for less than 5% of users who see ads on the social networking service.

Last month, Twitter gave Musk access to “firehose,” a raw data repository of hundreds of millions of daily tweets.

Twitter lawyers described Elon Musk’s attempt to undo its $44 billion purchase of the social network as “invalid.” “The alleged termination of Mr. Musk’s contract (…) is invalid and unlawful, and constitutes a disavowal of his obligations under the agreement.The social network’s legal team confirmed in a letter shared by the Securities Exchange Commission (SEC).

With information from Agence France-Presse, Associated Press and Reuters

Read on:

Elon Musk said he canceled his Twitter purchase: He accused the company of not providing all the information he requested
Twitter Stock Drops After Elon Musk Stops Buying $44 Billion
From the time he announced his withdrawal from the Twitter purchase, Elon Musk lost more than twice what the company was worth

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