Loading...

Twitter Suing Musk Claiming Attempt to Purchase Company Was ‘Elaborate Joke’

July 13, 2022 by Madeline Hughes
Twitter Suing Musk Claiming Attempt to Purchase Company Was ‘Elaborate Joke’
The Twitter icon is displayed on a mobile phone in Philadelphia, Pa., on April 26, 2017. (AP Photo/Matt Rourke, File)

WASHINGTON — Twitter sued Elon Musk Tuesday after the world’s richest man attempted to back out of his $44 billion deal to buy the social media company last week.

The company calls his attempt to back out part of a “long list of material contractual breaches by Musk that have cast a pall over Twitter and its business,” according to the lawsuit.

The lawsuit filed in the Delaware Court of Chancery could force him to buy the company at the same stock price — $54.20 per share — or pay the $1 billion breakup fee, which is part of the purchase agreement.

This comes after a months-long battle where Musk secretly bought 9.2% of the company’s stock, attempted a hostile takeover of the company, and then came to an agreement to buy it all in the month of April.

Musk stated one of his top priorities in buying the company was to rid the social media platform of automated spam “bot” accounts. In his filing to terminate the deal, his lawyers wrote Twitter was not forthcoming with information about the number of bot accounts.

Twitter refuted his claims. In the company’s lawsuit, it also said it gave him that information “to the best of its knowledge.”

The lawsuit also points out, “Musk made his offer without seeking any representation from Twitter regarding its estimates of spam or false accounts.”

The company contends Musk’s complaint about the spam accounts and his entire plan to purchase the company is part of an “elaborate joke,” the company wrote in its lawsuit which included copies of Musk’s memes about the Twitter deal.

“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, 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,” the company wrote.

Shortly after the lawsuit was filed, Musk tweeted, “Oh the irony lol.”

In the lawsuit, Twitter lays out how the timeline of Musk requesting information on bots coincides with the market downturn that caused him to lose about $100 billion from his Tesla stock since last November.

“So Musk wants out. Rather than bear the cost of the market downturn, as the merger agreement requires, Musk wants to shift it to Twitter’s stockholders,” according to the lawsuit.

The company contends this is part of Musk’s tactics that have been filled with disdain for the company and its shareholders since he first skipped out on filing the proper financial disclosures when he acquired 5% of the company.

Instead, Musk filed the proper paperwork on April 4, more than a week after he amassed 5% of the company’s stock on March 24. During that week between, he continued buying stock in the company accumulating 9.2% of the company’s stock.

“It tracks the disdain he has shown for the company that one would have expected Musk, as its would-be steward, to protect,” the company stated in the lawsuit.

Along with the lawsuit, the company filed a motion asking to expedite the case during a four-day trial in September.

“Expedition is essential to permit Twitter to secure the benefit of its bargain, to address Musk’s continuing breaches, and to protect Twitter and its stockholders from the continuing market risk and operational harm resulting from Musk’s attempt to bully his way out of an airtight merger agreement,” the motion states.

Madeline can be reached at maddie@thewellnews.com or on Twitter @ByMaddieHughes

In The News

Health

Voting

In The News

November 23, 2022
by Dan McCue
Senate Panel to Hold Hearing on Taylor Swift Ticket Fiasco

WASHINGTON — When you’re Taylor Swift, things get noticed — even in the halls of Congress. Just days after the... Read More

WASHINGTON — When you’re Taylor Swift, things get noticed — even in the halls of Congress. Just days after the reigning pop superstar scored six wins at the 2022 American Music Awards, the Senate subcommittee that handles antitrust and consumer rights matters said it plans to... Read More

November 23, 2022
by Dan McCue
White House Offers Up Thanksgiving ‘Talking Points’ to Get Through Thursday’s Dinner

WASHINGTON — Elon Musk may have invited former President Donald Trump back to Twitter, but it’s the Biden administration that... Read More

WASHINGTON — Elon Musk may have invited former President Donald Trump back to Twitter, but it’s the Biden administration that is taking full advantage of the social media platform for some pre-holiday messaging. In a Tweet posted shortly after 9 a.m. Wednesday, White House Chief of... Read More

November 22, 2022
by Tom Ramstack
Attorneys General Push Back Against Senators Who Protect Fossil Fuel Industry

WASHINGTON — A blame game like the one that marked the COP27 international climate change conference continued this week in... Read More

WASHINGTON — A blame game like the one that marked the COP27 international climate change conference continued this week in Washington between Democratic attorneys general and Senate Republicans. Attorneys general from 16 states and the District of Columbia fought back Monday against warnings from Senate Republicans... Read More

November 22, 2022
by Dan McCue
Administration Extends Student Loan Payment Pause Through June

WASHINGTON — The Biden administration on Tuesday afternoon extended its pause of federal student loan repayments to June 30, 2023,... Read More

WASHINGTON — The Biden administration on Tuesday afternoon extended its pause of federal student loan repayments to June 30, 2023, saying the move was necessary to give the U.S. Supreme Court time to rule in a case challenging the program. “I'm confident that our student debt... Read More

November 22, 2022
by Dan McCue
Supreme Court Says Trump Must Give Tax Returns to Congress

WASHINGTON — The Supreme Court gave former President Donald Trump a little less to be thankful for this Thursday, clearing... Read More

WASHINGTON — The Supreme Court gave former President Donald Trump a little less to be thankful for this Thursday, clearing the path for the imminent handing over of his tax returns to a congressional committee. As is their custom, the justices did not explain the rationale... Read More

November 22, 2022
by Dan McCue
We Can't All Travel Like a President, But 54.6M Said to be Traveling for Thanksgiving Anyway

WASHINGTON — Fifty-four point six million people are predicted to travel 50 miles or more to celebrate Thanksgiving, a 1.5%... Read More

WASHINGTON — Fifty-four point six million people are predicted to travel 50 miles or more to celebrate Thanksgiving, a 1.5% increase over last year, and 98% of pre-pandemic volumes, according to AAA. In fact, this year is projected to be the third busiest for Thanksgiving travel... Read More

News From The Well