It’s on – Twitter sues Elon Musk in Delaware court over $44 billion deal

Twitter is suing Elon Musk for violating the $44 billion deal to buy the social media platform.

Prepare for a mighty battle.

The social media company’s board has asked a Delaware court to order the world’s richest person to complete the merger at the agreed price.

The lawsuit says:

“Musk apparently believes that he – unlike every other party subject to Delaware contract law – is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.” 

twitter’s lawsuit claims

On Friday, Musk ended the deal, claiming Twitter violated the agreement by failing to respond to requests for information regarding fake or spam accounts on the platforms.

Twitter’s lawsuit accuses Musk of “a long list” of violations of the merger agreement that “have cast a pall over Twitter and its business.”

Why did Elon Musk change his mind about buying Twitter?

Shares in the social media platform tumbled to $34.06 on Tuesday from above $50 when the deal was accepted by Twitter’s board in late April.

Why did Musk cancel the deal?

Musk said he was terminating the merger because of the lack of information about spam accounts and inaccurate representations that he said amounted to a “material adverse event.” He also said executive departures amounted to a failure to conduct business in the ordinary course, as Twitter was obligated to do.

Twitter said it negotiated to remove from the merger agreement language that would have made such firings a violation of ordinary course requirement.

Twitter shares slump as Elon Musk exits

Twitter shares plunge after Elon Musk’s withdrawal of his $US44bn takeover bid, setting the stage for a potential legal brawl.