Twitter Sues Elon Musk to Force $44 Billion Buyout Completion
Twitter files a lawsuit against Elon Musk in Delaware court to enforce the original $44 billion merger agreement after Musk attempts to terminate the deal.
Twitter files a lawsuit against Elon Musk in the Delaware Court of Chancery to enforce its original $44 billion merger agreement. The social media company accuses Musk of acting in bad faith and refusing to honor his obligations because the deal no longer serves his personal interests. This legal action follows Musk's late-week declaration that he terminates the acquisition, a move he bases on concerns regarding Twitter bots and a claimed lack of provided information.
The lawsuit marks the beginning of a potentially long legal battle as Twitter demands Musk complete the purchase at $54.20 per share. Twitter argues that Musk's stated reasons for abandoning the deal are merely pretexts and points to a long list of material contractual breaches that disrupt company operations and destroy stockholder value. The company seeks a four-day trial in September to resolve the dispute quickly.
Legal experts say the outcome of this high-profile dispute remains unpredictable. A judge potentially forces Musk to complete the acquisition, requires him to pay a $1 billion breakup fee, or oversees a settlement and renegotiation of the purchase price. Meanwhile, Twitter's stock currently trades more than 37 percent below Musk's original offer, a decline the company attributes partially to the billionaire's erratic actions during the acquisition process.