Musk Invites Legal Action as he Pulls of $44 bn Deal

Story Highlights
  • Musk to cancel $44bn Twitter deal.
  • The legal filing came after Musk accused the company of misleading" statements about the number of fake accounts.
  • Twitter to take legal action against Musk.

Billionaire Elon Musk pulled the plug on his $44 billion deal to buy Twitter, accusing the company of “misleading” statements about the number of fake accounts.

In a regulatory filing, Tesla Chiefs lawyer claimed that the microblogging site had failed to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company’s business performance.

Musk further alleged that Twitter breached the agreement when it fired two top managers, without his consent as required by their contract.

Responding to the filing, Twitter’s chairman, Bret Taylor has declared that the board would pursue legal action to enforce the merger agreement. “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,” Mr Taylor tweeted.

Musk who in a bizzare move acquired the microblogging site will have to pay a $1 billion breakup fee if he does not complete the transaction.

One of the reasons Elon Musk gave for his interest in taking Twitter private was his belief he could add value to the business by getting rid of its spam bots – the same problem that he’s now citing as a reason to end the deal.

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