Musk had backed out of the acquisition of the social network because, in his view, he had not provided the “requested business information.” Accusations returned to sender, now also at the legal level
Twitter is now serious. As Bloomberg reports, the social network has mandated the prestigious law firm Wachtell, Lipton, Rosen & Katz to file suit against Elon Musk as early as this week. A few days ago, the Tesla patron walked away from the $44 billion deal to acquire Twitter because, in his view, the company had been unable to prove that fake profiles were less than 5 percent of the total. Accusations promptly returned to sender, now also at the legal level.
Lawyers – Turning to Wachtell, the social network will be able to count on lawyers such as Bill Savitt and Leo Strine, who have been clerks of the Delaware Chancery Court, the court where the case will be handled. Instead, Musk’s legal representatives are Quinn Emanuel Urquhart & Sullivan LLP. Twitter wants the American billionaire to complete the acquisition, honoring the deal at the agreed price of $54.20 per share.
Musk’s accusations – A new chapter in the Twitter-Musk saga opens up, which has been going on since last April and will not end anytime soon. According to Tesla’s boss, the social network “failed to comply with its contractual obligations” by not providing the “commercial information requested”. In the letter sent by Musk’s attorneys to the Twitter legal department, it states that the requests were “ignored” or “rejected for unjustified reasons”, while on other occasions “incomplete or unusable information” was provided.
Question and Answer – According to Musk’s lawyer, Twitter allegedly violated “substantially multiple provisions of the agreement”, including the request to “make an independent assessment of the presence of fake or spam accounts” submitted on May 25th. The social media, for his part, continues to reiterate that the accused accounts are 5% of the total, but Musk remains convinced that there are many more.
The situation on the stock market – Meanwhile, the social network is still losing ground on the stock market. In the premarket, the stock of the American company fell by 10.22% to 33.01 dollars, after having recorded a -9% in post-close trading last Friday. A price far from the 54.20 dollars of the offer presented by Musk.