24.8 C
Abuja

Twitter lawyers set to sue Elon Musk over termination of $44bn sale

Advertisement

Related

Advertisement
Advertisement

TWITTER has disclosed its readiness to resort to legal action to seal the $44 billion sale to Elon Musk despite the billionaire’s announcement that he had called off the agreement.

Twitter’s lawyers from the firm Wachtell, Lipton, Rosen & Katz disclosed this in a letter to the Musk, the Tesla and SpaceX CEO.


READ ALSO:

Twitter investors sue Musk, platform for alleged stock manipulation

Elon Musk rolls in new investors to fund Twitter deal – SEC filing

Elon Musk’s Twitter acquisition raises concerns over free speech


They stated that Musk “knowingly, intentionally, willfully, and materially breached” his agreement to buy the company and that the call-off of the acquisition deal was “invalid and wrongful.”

- Advertisement -

“Twitter reserves all contractual, legal, and other rights, including its right to specifically enforce the Musk Parties’ obligations under the Agreement,” the lawyers wrote.

This is coming after Musk and his lawyers said last week that they’re killing the deal to acquire the social network after accusing Twitter management of making “false and misleading representations”.

Musk says the prevalence of fake and spam accounts on the platform is far higher than the five per cent Twitter estimates.

Twitter has said it uses private data to make those estimates, so they can’t be easily replicated by outsiders.

In April, Musk launched a surprise bid to buy Twitter for $54.20 a share, which the social media company initially resisted before accepting.

“Contrary to the assertions in your letter, Twitter has breached none of its obligations under the Agreement, and Twitter has not suffered and is not likely to suffer a Company Material Adverse Effect.

“The purported termination is invalid for the independent reason that Musk and the other Musk Parties have knowingly, intentionally, willfully and materially breached the Agreement,” the letter from Twitter’s lawyers added.

- Advertisement -

The company demanded that “Musk and the other Musk Parties comply with their obligations under the Agreement”.

Since last month, Musk and Twitter were at odds about the number of spam and fake accounts on the platform with Twitter claiming that number to be less than five per cent of users.

While the company provided Musk’s team with a “firehose” access to its data, the Tesla CEO’s team said “those APIs contained a rate limit lower than what Twitter provides to its largest enterprise customers”.

Since Musk’s announcement about the termination of the deal, Twitter shares have plunged by over 10 per cent.

A report by Bloomberg noted that the social media company aims to file a lawsuit against Musk this week.

Author profile

Amos Abba is a journalist with the International Center for Investigative Reporting, ICIR, who believes that courageous investigative reporting is the key to social justice and accountability in the society.

Support the ICIR

We invite you to support us to continue the work we do.

Your support will strengthen journalism in Nigeria and help sustain our democracy.

[molongui_author_box]

If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Support the ICIR

We need your support to produce excellent journalism at all times.

spot_img
Advertisement

Recent

Nigeria ranks 27th among countries with highest number of prisoners

NIGERIA, with 74,059 inmates, is currently the 27th country with the highest number of...

Banks will accept rested notes after February 10 deadline – Emefiele

THE Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has assured Nigerians...

General Elections: INEC to engage NNPC Ltd over fuel supply concerns

THE Independent National Electoral Commission (INEC) said it would be meeting with the leadership...

How North Korean runs illegal hospital patronised by the high and mighty in Abuja

A PRIVATE hospital run by a man, Jongsu Kim, who claims to be Chinese...

Why there is no basis for current petrol scarcity – PENGASSAN

THE Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) says there is...
Advertisement

Most Read

Advertisement

Subscribe to our newsletter

Advertisement