Twitter sues Elon Musk for backing out of $44 bn buyout

TIL Desk/Business/San Francisco/ Twitter has sued Tesla CEO Elon Musk after he decided to back out of the USD 44 billion takeover deal. As per Report, the lawsuit was filed in Delaware’s court of chancery on Tuesday, accusing Musk of hypocrisy.

“Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions,” Twitter wrote in the lawsuit.

Musk was quick enough to react to the lawsuit. Minutes after news surfaced online that Twitter has sued him, Musk took to the microblogging site and just simply tweeted, “Oh the irony lol.” The lawsuit marks the beginning of what could be a protracted legal battle as Twitter seeks to hold Musk to his deal to pay USD 54.20 per share for the company.

Twitter, which is being represented by M&A powerhouse law firm Wachtell, Lipton, Rosen & Katz, alleged that Musk looked for an escape from the deal, which required a “material adverse effect” or breach of contract. “Musk had to try to conjure one of those,” the lawsuit stated.