American micro-blogging social media giant, Twitter, has reportedly filed a lawsuit against Tesla boss, Elon Musk, after the billionaire abruptly pulled out of the $44 billion deal to acquire the firm.
As per reports, Twitter claims that Musk, after having signed a legally binding merger agreement, is refusing to uphold his commitments to the company and its stockholders since the deal he made no longer caters to his personal interests.
Industry experts say, Twitter's lawsuit was anticipated after Musk formally announced last week that he does not intend to purchase the social network anymore. The billionaire supposedly cited Twitter bots being the reason behind his decision to abandon the deal.
Musk claimed that Twitter did not adequately respond by providing him with the information he had requested to evaluate the acquisition.
The suit filed on Tuesday marks the start of what could be a lengthy legal fight in which Twitter attempts to hold Musk to his commitment to pay $54.20 per share for the firm as Musk tries to be let out of the ordeal scot-free.
According to legal experts, the verdict of the case could be uncertain and could entail a judge ordering Musk to finalize the purchase or make a $1 billion breakup payment. However, there could be scenarios where both parties may reach a settlement, renegotiate the purchase price, or even agree upon letting Musk walk away from the deal without making a payment.
As per a court filing, Twitter wants a four-day trial in September.
Twitter, in its lawsuit, which was filed on Tuesday, stated that Musk's actions throughout his acquisition of the social media platform were in ‘bad faith’, and the SpaceX CEO was charged with working against the agreement ever since the market started to turn.
The lawsuit claims that Musk's justifications for wanting to end the agreement, such as the existence of bots on the platform, are just ‘pretexts’,
In April, Musk had announced his intention of purchasing Twitter for $54.20 per share. At Tuesday's closing, the stock was trading for little over $34 per share, which is more than 37% less compared to Musk's offer.
Twitter partially blames Musk's efforts for the drop in its shares, even though other social media firms also experienced a drop in their share prices around the same time.