Twitter Files Lawsuit in Delaware Court Against Elon Musk For Backing Out of $44B Deal to Purchase Company

Twitter today filed a lawsuit in a Delaware court against Elon Musk for Backing out of the $44 billion deal to purchase the company.

The suit was filed in Chancery Court in Delaware, where Twitter is incorporated and accuses Musk of “refusing to honor his obligations.”

Twitter reportedly hired a powerful law firm as it pursues planned “legal action” after Elon Musk canceled the $44B deal.

According to Bloomberg, the company has hired Wachtell, Lipton, Rosen & Katz LLP to represent it in the forthcoming suit against Musk.

Bret Taylor, the Twitter chairman, tweeted on Friday, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement.”

“We are confident we will prevail in the Delaware Court of Chancery,” Taylor insisted. Twitter CEO Parag Agrawal retweeted Taylor’s tweet.

The tweet from Taylor came after a lawyer for Musk sent a letter charging that “Twitter has not complied with its contractual obligations.”

The letter claims that Twitter did not provide Musk with the relevant business information that he requested as the contract required.

Musk has previously said he wanted to be able to verify Twitter’s claim that their spam accounts are less than 5% of monetizable daily active users.

Overnight, Musk replied with a laugh emoji to a tweet that suggested that he “OWNS Twitter” and included his face transposed on the Drake Hotline Bling meme and Owning Twitter in both boxes.

🤣

— Elon Musk (@elonmusk) July 12, 2022