Twitter Inc. on Tuesday reportedly filed a case against Elon Musk, the CEO Tesla Inc. for cancelling $44 billion purchase deal.
The Twitter filed case against Elon Musk in the Delaware Court of Chancery to hold Musk to pay the amount of $44 billion for the deal of Twitter.
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The CEO of Tesla, Inc., Elon Musk decides to terminate the $44 billion deal to buy Twitter claiming about the multiple violations in the agreement.
Elon Musk claimed that the deal of purchasing Twitter was canceled because the Twitter breached the deal by failing to hand over data. He demanded that the number of bots and spam accounts on the platform should be evaluated.
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The legal experts said that the dispute could result in the involvement of judge forcing Musk to complete the deal or forcing him to pay a $1 billion breakup fee, or other scenarios including a settlement, renegotiation of the purchase price, or even Musk walking away without paying anything.
In May, Musk said that the deal was “temporarily on hold” as he was waiting for the dates on the number of fake and spam accounts on Twitter.
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The billionaire businessman had asked for evidence to back the company’s assertion that spam and bot accounts make up less than 5% of its total users.
In a letter filed with the US Securities and Exchange Commission, Musk’s lawyer said that the Twitter had failed or refused to provide this information.
According to the letter: “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
