Twitter has filed a lawsuit in the Delaware Court of Chancery to hold Elon Musk accountable to his contractual obligations
Twitter is suing Elon Musk to get him to complete his $44 billion acquisition of the company. Musk, who had agreed to buy Twitter in April, announced his intent to walk away from the deal last week. “We are committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plan to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery,” said the social media giant in its filing. Anand Mahindra has commented on the issue saying its a “waste of money, time and energy.”
“What a waste of time, energy and money. Twitter is an indispensable source of news and connectedness. Can it be run like a quasi social enterprise—listed, for profit—but with a strong charter and managed by a board with directors who act responsibly like trustees?” tweeted Anand Mahindra, chairman of Mahindra Group.
Twitter, in its response to Musk’s intent to terminate the contract, said : “Mr. Musk’s and the other Musk Parties’ purported termination is invalid and wrongful, and it constitutes a repudiation of their obligations under the Agreement. Contrary to the assertions in your letter, Twitter has breached none of its obligations under the Agreement, and Twitter has not suffered and is not likely to suffer a Company Material Adverse Effect. The purported termination is invalid for the independent reason that Mr. Musk and the other Musk Parties have knowingly, intentionally, willfully, and materially breached the Agreement.”
“Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests,” added the company in the suit. “Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”