The crypto community’s preferred social media platform Twitter, and Dogecoin (DOGE) advocate, Tesla’s Elon Musk, are engaged in a legal battle.
The company vowed to fight back, after Musk said he’s terminating his agreement to buy Twitter in a USD 44bn deal.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery,” said Bret Taylor, Chairman of Twitter.
Musk accused the social media of violating their agreement and making false statements. In a filing, Musk said he has sought the data and information necessary to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.” However, as per Musk, “Twitter has failed or refused to provide this information.”
“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,” according to the filing.
Reuters reported Delaware courts have put a high bar for acquirers to abandon their deals. However, target companies often prefer the certainty of a renegotiated deal at a lower price or financial compensation rather than a messy court battle that can last for many months,
“If it goes to court, Musk has the burden to prove more likely than not, that the spam account numbers not only were false, but they were so false that it will have significant effect on Twitter’s earnings going forward,” quoted Ann Lipton, associate dean for faculty research at Tulane Law School.
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