Posted on: Saturday 30 July 2022 – 7:45 PM | Last update: Saturday 30 July 2022 – 7:47 PM
The American billionaire and CEO of Tesla, Elon Musk, filed a lawsuit against Twitter, escalating his legal battle with it.
Twitter had previously called for a speedy trial of Musk over his decision to withdraw from a $44 billion deal to buy the social networking company.
A memorandum to the Delaware Specialized Business Law Court in charge of this file stated that the complaint filed “secretly” came in a 164-page document whose content is not yet available to the public.
Musk, the world’s richest man, had pledged to pay $54.20 per share to Twitter, but told the company earlier this month that he wanted to back out of the agreement.
Musk said the company had failed to provide sufficient information about the number of fake Twitter accounts and had breached its obligations under the deal by firing senior managers and laying off a large number of employees.
Twitter says Musk’s reasons for withdrawing from the agreement are a cover for buyer’s remorse after agreeing to a bid 38% higher than the stock’s closing price on April 1, shortly before the stock market faltered and electric car maker Tesla shares lost ground. Over $100 billion worth of it.
Twitter shares fell 0.7% to $41.32 per share at the close of Wall Street on Friday.
Musk’s counter-complaint came after he lost his battle by postponing the lawsuit against him, as the Delaware state judge set October 2022 as the date to consider the lawsuit.
Delaying the case “risks doing irreparable harm,” said Kathleen Judd McCormick, chief judge of the Delaware District Court, which handles many high-profile commercial disputes, adding that “the longer the delay, the higher the risk.”
The company has demanded a speedy trial against Musk, after reports said he improperly withdrew from the Twitter acquisition in a $44 billion deal.