Twitter Hires Wachtell To Sue Elon Musk Over $44 Billion Takeover Deal
Social media platform Twitter has hired US law firm Wachtell, Lipton, Rosen & Katz LLP as it sues Tesla CEO Elon Musk over his abandonment of a $44 billion takeover deal.
In April, Musk reached a $44 billion deal to take over Twitter but has now withdrawn from the transaction.
In a statement to the US Securities and Exchange Commission (SEC), representatives for Musk claimed Twitter had breached the terms of the agreement and “appears to have made false and misleading representations.”
They said Twitter also failed to provide information requested by Musk to enable him to “make an independent assessment of the prevalence of fake or spam accounts” on the platform.
“Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the statement read.
After Musk’s withdrawal from the deal, shares of Twitter dropped by 7% in extended trading.
The terms of the deal require Musk to pay a $1 billion fee if he fails to complete the transaction. However, Twitter’s board is set to take legal action against Musk instead of accepting the $1 billion fee.