Twitter Is Suing Elon Musk (& Things Don't Look Good For Him)
Elon Musk has announced he no longer plans to buy Twitter, but the social media platform isn’t letting him go without a fight.
Twitter has launched a lawsuit in hopes that a judge will force Elon to go through with the deal. The company argues the billionaire only wants to back out of the deal because of a drop in the stock market which reduced his wealth by $100 billion.
Twitter’s value also dropped when the stock market tanked – so much so, that Elon’s original $44 billion offer to buy the platform is now higher than the company’s market value.
Earlier this week, Elon submitted a regulatory filing to back out of the acquisition. Documents reveal that Elon believes he was “mislead” by Twitter. He’s accusing the company of misrepresenting the number of spam accounts on its social media platform.
“Twitter is in material breach of multiple provisions […] [and] appears to have made false and misleading representations,” the filing says.
The SpaceX founder previously announced in May he put the deal on hold after requesting additional spam account statistics from Twitter. The company said that only 5% of accounts are spam, but Elon has stated he believes it’s higher.
However, Twitter may have a case against Elon. The billionaire signed an agreement with the company in April promising to buy the company for $54.20 per share.
The agreement included a “1 billion break-up fee” as well as a clause that gives Twitter the right to sue the Tesla founder should the deal fall through.
Elon previously expressed interest in owning Twitter to make the platform more political neutral. He’s even promised to reinstate former U.S. President Donald Trump’s account should the acquisition go through. Trump was permanently banned from the platform after the Capitol Riots.
This isn’t the only lawsuit Elon is facing at the moment. Last month, a $258 billion class action lawsuit was launched against him for promoting Dogecoin, which the case calls a pyramid scheme.
The plaintiff Keith Johnson is accusing Elon and his companies of inflating the price of the cryptocurrency, rendering it valueless, while encouraging the public to buy it.
In May, a lawsuit was also levied against him over the Twitter buyout. The case argued the acquisition went against Delaware law; it cannot be completed in less than three years since Elon had pre-existing agreements with Twitter shareholders.
However, with Elon hoping to back out of the Twitter deal, the lawsuit may be nil.
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