According to Twitter , Elon Musk is responsible for his contractual obligations and must continue with the project to purchase the social network.
A new chapter opens amid Elon Musk ‘s now-canceled Twitter buyout . The company behind the social network has formalized its lawsuit against the billionaire in the Court of Chancery of Delaware, United States, this Tuesday, July 12.
According to Twitter , Elon Musk must fulfill his contractual obligations by buying the social network for the amount that was initially agreed upon: $44 billion.
He accuses him of contradictions
According to the lawsuit, Twitter declares that there is a certain “hypocrisy” in Elon Musk ‘s actions to cancel the purchase of the social network due to the issue of false accounts.
“Musk’s exit strategy is a model of hypocrisy. One of the main reasons Musk cited March 31, 2022 for wanting to buy Twitter was to get rid of “crypto spam” which he considered a “major blight on the user experience.” Musk said that he needed to take the company private because, according to him, eliminating spam would be commercially impractical,” Twitter begins . “In his press release announcing the deal on April 25, 2022, Musk made a wake-up call to “defeat spam bots.” But when the market declined and the fixed-price deal became less attractive, Musk changed the narrative about it, suddenly demanding “verification.”and affirmed a compelling need to carry out the “diligence” which he had expressly renounced.”
As recalled, Elon Musk has interrupted the purchase process by requiring the platform to indicate what exact percentage belongs to false accounts. For Musk, it’s 20%, while Twitter says it’s only capped at 5%.
“Having put on a public show to put Twitter on the line, and proposed and then signed a vendor-friendly merger agreement, Musk apparently believes that he, unlike any other party subject to Delaware contract law , you are free to change your mind, wreck the company, discontinue its operations, destroy shareholder value, and walk away,” the lawsuit via Techcrunch read .
Billion at stake
This transaction maintained a clause in the event that one of the parties goes back: the transgressing party had to pay one billion dollars to the affected party.
However, the agreement gives limited room for maneuver to withdraw and allows either side to point out irregularities in the process. In this case, Musk hides behind the lack of information about the bots.
Twitter executives detailed to the press in a briefing reported by Reuters last Thursday, June 7, that the network detects and eliminates more than a million of these types of accounts daily, in addition to ensuring these types of users are well below of 5%.