Elon Musk has said he is terminating a $44bn deal to buy Twitter, saying the social media company did not provide information about fake or spam accounts on the platform.
Twitter immediately fired back, saying it would sue the Tesla CEO to uphold the deal.
In a filing to the Security and Exchange Commission (SEC) on Friday, Musk’s lawyers said Twitter had failed or refused to respond to multiple requests for information on fake accounts, which is fundamental to the company’s business performance.
“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,” read the filing.
It went on to say: “Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement.”
The chair of Twitter’s board, Bret Taylor, tweeted that the board is “committed to closing the transaction on the price and terms agreed upon” with Musk and “plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
The trial court in Delaware frequently handles business disputes among the many corporations, including Twitter, that are incorporated there.
The Twitter board unanimously agreed to sell the platform to Musk for $44bn in April, in a deal that stirred controversy and questions about free speech and misinformation on the popular social media platform.
Groups opposing the takeover from the outset — including those advocating for women, minorities and LGBTQ people — cheered Friday’s news, AP reported.