Twitter is suing Elon Musk for cancelling the social media giant’s acquisition. Twitter still wants to make things happen.
Earlier this year, Elon Musk announced the intent to acquire Twitter for €43.5 billion ($44 billion). Twitter agreed to the deal. Recently, however, Elon Musk got cold feet. He put the deal on hold last Friday. According to Musk, the platform’s user figures were too rosy.
Elon Musk claims that Twitter provided misleading information on the number of active spambots. The bots allegedly affect the actual number of users. Musk called Twitter’s attitude ‘misleading’.
Among other things, Musk’s lawyers claim that the CEO was given less information about the number of end users than other parties. The information provided is said to have consisted of a single PDF.
Breach of contract
Twitter is suing the Tesla CEO for breach of contract in the US state of Delaware. The social media giant wants the acquisition to go ahead. The company has its headquarters in Delaware, as do many large tech companies. Here, lawsuits on cancelled acquisitions are heard without a jury. No fines can be imposed. Often, these cases end with a financial settlement between both parties.
Both companies declined to comment on the case. According to Bloomberg, both parties called in major law firms.