In a 62-page lawsuit filed on Tuesday, Twitter accused Elon Musk of breaching an agreement to buy the social media company for $44 billion. Musk, the world’s richest man, has tried to back out of the acquisition, citing Twitter’s number of fake accounts and accusing the company of not giving him enough information about the issue and misrepresenting itself.
Twitter was unsparing, calling his escape strategy a “model of hypocrisy” and a “model of bad faith.”
In its lawsuit, Twitter sought to demonstrate that it has the right to sue him for him to close the deal and show that Musk’s claims against it had no merit. Instead, it was Musk who was violating the agreement, the company said. Twitter was unsparing, calling his escape strategy a “model of hypocrisy” and a “model of bad faith.” It backed up its argument with numerous tweets from the billionaire.
Musk had become a critic of Twitter’s moderation policies in recent months, and his announcement that he wanted to buy it came with promises that he would address issues with the way the algorithm presents tweets, and make Twitter a bastion of free speech. And, yes, he was going to let former President Donald Trump rejoin the platform if he wanted.
It has been previously established that Musk can be charged a $1 billion fee to the SEC for pulling out of the deal, according to the terms of his purchase. There’s no word yet on whether that money will ever be successfully extracted by the government.
Why is Musk trying to end the deal?
Musk, who leads Tesla and Space X, appears to have concerns about the future of Twitter’s business, even though he said at a TED2022 conference that he didn’t care about the “economics” of buying Twitter.
sent by Musk’s lawyer claims Twitter violated parts of its agreement with Musk, and it outlines the information the company allegedly failed to provide the billionaire, including about the social network’s calculations of daily users. Twitter makes most of its money from ad sales, so the number of people who can see ads is an important metric for the company.
“This information is fundamental to Twitter’s business and financial performance and is necessary to consummate the transactions contemplated by the Merger Agreement because it is needed to ensure Twitter’s satisfaction of the conditions to closing, to facilitate Mr. Musk’s financing and financial planning for the transaction, and to engage in transition planning for the business,” the letter said.