Listen to this articleOn Tuesday, Twitter submitted a lawsuit against the CEO of Tesla Elon Musk. The court filing says he is rejecting to honor his responsibilities under their agreement. It also said that Musk is looking to make him complete the deal. Moreover, Musk is attempting to pull back the $44 billion purchase deal announced on April 25, 2022.
Musk claimed that Twitter was unable to fulfill his requests for the platform’s information about bot activity and spam. The company presented this action to prevent Musk from more splits to force Musk to complete his legal responsibilities. The lawsuit will pressure the windup of the merger upon the assurance of some exceptional conditions.
Twitter filed the lawsuit in the Delaware Court of Chancery. A spokesperson for Twitter, Catherine Hill, said she doesn’t have a comment besides the legal filing. Twitter board chairman Bret Taylor said in a detailed tweet that the lawsuit is designed to keep Elon Musk responsible. However, Musk responded with a tweet just after Twitter filed the lawsuit.
Musk was Alleged for Dumping Agreement
The lawsuit highlights the approach of Musk for making an unplanned and surprisingly bountiful offer to Twitter. He almost suddenly turned around and began playing with the company and showed the approach of dumping their agreement. Twitter alleged Musk for supposedly escaping from the deal that needed a material threatening effect or the split of the contract.
However, it was the time when the market turned and tech stocks started drowning. The lawsuit said Musk’s argument about Twitter having a spam bot issue also came at that time. The court filing alleged Musk for not asking Twitter about its spam estimation prior to the agreement despite his concerns. He sweetened his offer and removed a lust condition from the agreement and accessed the company’s non-public information.
Twitter is Reportedly Blocking One Million Active Users
CEO of Twitter Parag Agrawal also tweeted about the estimation and calculation of the company’s daily active users. It is noteworthy that Twitter recently informed reporters about daily blocking 1 million spam accounts. The court filing pointed out many tweets from Musk such as his public call asking the SEC for an investigation.
Moreover, the complaint features a bundle of information about discussions between Twitter management and Musk’s team. It includes Musk’s recently sent texts to the CEO and CFO to end an investigation about his deal financing status. Twitter provided more data to Musk regarding bots than he expected under the conditions of the agreement.
Musk Asked for Text Messages & Emails of Executives
Meanwhile, Musk’s team seemingly needed more than that. They asked for text messages and emails from executives regarding the topic. Twitter’s lawyers called it highly strange which motivated his initial decision not undergoing the industry. The social platform alleged that Musk stopped its efforts at putting compensation programs in place to maintain top talent.
It is important that Musk publicly said he would start the termination of Twitter employees after finalizing the deal. The CEO of Twitter also presented concerns in an internal memo from its employees and motivated them to read the lawsuit. He said it will offer an opportunity to present the entire story and defend the company, employees, and its stockholders.
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