Elon Musk is one of the most popular billionaires in the world right now. He manages to remain in the news for one thing or the other. Just in April this year, Musk announced that he’ll be buying the social media giant Twitter for a whopping $44 billion. He then went on to talk about democratizing the platform and performing sweeping changes.
But recently, he opted out of the deal for reasons that are not entirely disclosed. And now, Twitter is planning to sue him with the help of a big legal firm.
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Twitter Is Assembling A Legal Team To Sue Elon Musk
According to a report by Bloomberg, Twitter has hired the law firm giant Wachtell, Lipton, Rosen & Katz LLP to sue Elon Musk for terminating a $44 billion deal to acquire the social networking application. The firm specializes in large transactions and litigations and has connections with the Delaware court system where the case will be tried.
The Twitter board members have stated in a statement that it was “committed to closing the transaction at the price and terms agreed upon.” The board also said that they were confident “we will prevail in the Delaware Court of Chancery.” Twitter will have access to lawyers like Bill Savitt and Leo Strine, who served as Chancellor of the Delaware Chancery Court
According to the report, Twitter is likely to file a lawsuit against the Tesla CEO. Musk, on the other hand, will be represented by Quinn Emanuel Urquhart & Sullivan LLP.
Why Did Musk Opt Out Of The Twitter Deal?
Musk demanded information regarding fake accounts and misinformation, which according to him, Twitter failed to provide on multiple occasions. In the US Securities and Exchange Commission (SEC) filing, Musk’s lawyer declared that Twitter had declined Musk’s multiple requests for transparency regarding fake news information and spam accounts.
His lawyers have claimed that Musk’s analysis had indicated the percentage of false accounts is “wildly higher than 5%” which is much larger than what Twitter disclosed in its financial reports of the deal.
According to the deal agreements, Musk will have to pay a total sum of $1 billion as a breakup fee as he tries to walk away from the deal. However, the fee won’t be charged in case Musk terminates the deal.
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