Social Media Giant, Twitter will reportedly sue Tesla CEO Elon Musk over the billionaire’s decision to terminate the $44 billion deal in an attempt to takeover the company.
According to a report on Sunday, the company hired Lipton, Wachtell, Rosen & Katz LLP to represent it in a forthcoming suit against the billionaire.
On Friday, the Tesla CEO’s law firm sent a letter to Twitter accusing the social media company of making “false and misleading representations” during the time when Musk agreed to buy the company on April 25 and has “breached” multiple provisions of the initial agreement.
However, Twitter’s lawyers argued that “having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, 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,” the complaint said.
Musk’s decision came after he raised his concerns about the “spam bots” that are currently active on the platform. As a result of the complaint, Musk threatened Twitter to drop the deal if it fails to show that less than 5% of its daily active users are automated spam accounts.
Last month, multiple reports revealed that the social media platform had offered the Tesla CEO an access to its “firehose” of raw data on hundreds of millions of daily tweets posted by active accounts.
On Thursday, the platform announced that it has been removing over 1 million spam accounts everyday to shed more light on the company’s fake and bot accounts.
Early this May, Musk announced that his deal with Twitter was temporarily on hold due to “pending details supporting the calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk said, indicating he’s skeptical that the number of inauthentic accounts is that low.
Following Musk’s announcement, Twitter’s stock reportedly fell almost 10% and shares of Tesla, which Musk had proposed using to help fund the Twitter deal, jumped nearly 6%.
However, Tesla shares later tumbled after Musk revealed that Twitter was Musk’s target.
