Twitter sues Elon Musk: he allegedly destroys the company to create a competitor

(ORDO NEWS) — The other day, Elon Musk announced that he had changed his mind about buying Twitter, which caused a strong reaction not only in social networks and the media, but also in the company itself – the board promised to sue the billionaire. Now it’s not just a promise.

The lawsuit was filed on Tuesday, July 12, in a Delaware state court. You can get acquainted with it at the link. Among the accusations, in particular, are attempts to destroy the company, as well as the collection of information for the further creation of a competitor.

According to Twitter lawyers, Musk “showed disdain”, and to prove this, several screenshots of his tweets with memes and statements were provided right in the text. Now the court must decide whether Elon Musk had the right to unilaterally withdraw from the deal.

Twitter, Musk and irreparable harm

After months of arguments, letters, and threats to end the agreement, Musk announced that he had changed his mind about buying the social network because he did not believe her estimate of the number of bots and spam accounts, according to which the number of such pages is only 5 percent.

The company called Musk’s actions “an example of hypocrisy” because, after announcing the purchase, he “knew about the fake accounts and promised to rid the platform of them.”

By putting on a show, and then offering and signing a purchase agreement favorable to the seller, Musk apparently believes that she, unlike any other party subject to the laws of the state of Delaware, can disrupt the company, destroy the value of its shares and leave, – says in a lawsuit.

Twitter notes that the Musk team repeatedly and deliberately ignored meetings with the CEO and CEO of Twitter, in which they were supposed to transfer data at his request.

As a result, the buyer still got access to 49 terabytes of raw user data, which satisfies the requirements, but the entrepreneur was still dissatisfied.

Therefore, the company believes that he refused the deal for an imaginary reason and fears that the data could be used to create a competing social network.

Musk is refusing to honor his obligations to Twitter and its shareholders because the agreement he signed is no longer in his best interest.

Musk seems to believe he is free to change decisions, destroy the company, disrupt operations, destroy shareholder value. – stated in the statement of claim.

Now the court must determine whether Musk had the right to unilaterally terminate the merger agreement with Twitter due to the fact that the management of the social network allegedly did not provide him with the necessary information about the proportion of fake accounts and accounts used for mass mailing.

Recall that earlier the company also stated that some of the methods for evaluating fake accounts offered by Musk are unacceptable because they jeopardize user privacy by violating the relevant rules and agreements of the social network.

Twitter expects the court to start hearing the case in mid-September 2022. Earlier it was reported that in the event of a break in the deal, the entrepreneur must pay the company about $ 1 billion in compensation.

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