- Elon Musk filed a lawsuit against the social media company, Twitter.
- Musk backed out from the $44 Billion deal as he had no access to internal records.
- On Friday, the company share ended at $41.61.
Earlier this month, Elon Musk filed paperwork stating that he pulled back his transaction of $44B for purchasing Twitter, as the company did not meet his requirements. Following that, Elon continued to file a lawsuit against the social media giant company Twitter after his attempt to walk away from a $44 billion deal.
Moreover, this lawsuit was filed under confidentiality where the statement and related documents are not released publicly. The billionaire, Musk, agreed to purchase the company at $54.20 per share in April, then took back his offer as the company did not present the number of fake accounts to him.
Musk Abandoned Twitter Take Over
Significantly, Musk filed a lawsuit after Chancellor Kathaleen McCormick of the Delaware Court of Chancery scheduled a five-day trial starting on October 17 to decide whether the billionaire can back out of the agreement. Additionally, a Twitter shareholder also filed a case against Musk requesting the court that he should complete the transaction. Luigi Crispo is the one who filed against Musk in the Court of Chancery, he owns 5,500 Twitter shares.
The shareholder requests the Court to declare that Musk violated his fiduciary obligation to Twitter shareholders, and grant compensation for the damages he caused. According to the lawsuit, Musk bears a legal responsibility to Twitter’s shareholders due to his 9.6% ownership position in the business and the takeover agreement.
However, after Musk’s abandonment of the $44B deal, the company shares ended at $41.61 per share on Friday. Musk laid the blame on Twitter since the firm failed to give him the business data he requested and then sued Musk. The company says that it all was only a diversion because the new partnership required him to purchase at $54.2 per share.
Regarding McCormick’s trial appeal, it was set for October 17, but there was disagreement between the two sides on the scope of discovery, or who would have access to internal records and other evidence. Eventually, Musk will face prosecution in Wilmington, Delaware, for one week starting on October 24.