Twitter has hired an elite law firm to sue Elon Musk for refusing to buy the platform, but can he be forced to go through with it?
Twitter is said to have hired an elite law firm as it plans to take on the world’s richest man, Elon Musk.
Social Media Platform Board Agrees With Mr. Musk company purchase by $44 billion ($61.4 billion) at the end of April.
But just a few days ago it was announced that he rejection of the deal and now a dirty battle is expected in the courtroom.
bloomberg reported that Twitter has hired Wachtell, Lipton, Rosen & Katz, according to sources.
The company is expected to file a lawsuit in the Delaware Court of Chancery earlier this week, sources who were not named said.
Mr. MuskCEO of Tesla and SpaceX, will represent Quinn Emanuel Urquhart & Sullivan LLP.
He previously accused Twitter of “resisting and frustrating” its efforts to gain access to information about fake accounts, saying the deal could not proceed until the issue was resolved.
He claimed that up to 20 percent of the 229 million Twitter users could be fake. The company itself claims that the real figure is about 5%.
His lawyers wrote in a letter on Twitter last week: “Mr Musk terminates merger agreement because Twitter materially violates numerous provisions of the agreement, [and] appears to have made false and misleading representations on which Mr. Musk relied in the merger agreement.”
The big question now is if Musk loses his lawsuit with Twitter, can he really be forced to buy the social networking platform?
Zohar Goshen, Professor of Transactional Law at Columbia Law School, raised this issue with Wall Street Journalbecause the situation is unprecedented.
According to the publication, most of the cases where buyers were forced to comply with the “concrete results” clause that Mr. Musk agreed to were small deals and have never been on this scale.
“They don’t really have the tools to make him go through with it. You don’t put people in jail for not buying something,” Mr. Goshen said.
Relief and Disappointment at Twitter Deal Dropout
Mr Musk’s decision to back out of buying Twitter was met with a mixture of relief and disappointment across the political spectrum, with many criticizing the billionaire but others applauding his “exposing” the influential messaging platform.
The announcement of the deal raised fears that the platform would face a surge in abuse and misinformation after Mr. Musk — a self-proclaimed free speech absolutist — said he would pretty much allow anyone to say whatever is legal on Twitter.
“For Twitter to earn public trust, it must be politically neutral, which effectively means upsetting both the far right and the far left alike,” he wrote in one of the tweets.
The announcement that he no longer wants to buy Twitter sparked a triumph from advocacy groups that launched a campaign to stop Musk from making the purchase.
“Musk-led Twitter would open a Pandora’s box and reopen the floodgates to hate and groundless conspiracy theories, making the platform and country a more dangerous place,” said Bridget Todd, communications director for advocacy group UltraViolet.
“[The deal breakdown] is a welcome respite for women, people of color and members of the LGBTQ+ community,” she said.
Nicole Gill, co-founder and CEO of accountable tech, a far-left organization, called Musk’s proposal a “chaotic crusade.”
“Our information ecosystem, security and democracy cannot be run by irresponsible billionaires,” she said.
But hopes were dashed for others who believed that Musk’s management of the platform would lead to a weakening of measures aimed at curbing bullying, lies and other abuses that are considered politically motivated and against free speech.
“The party is really over. A purge is coming,” conservative commentator Dave Rubin tweeted.
Donald Trump Jr., son of the former president, has predicted that “censorship” on Twitter will “come back tenfold.”
“Zero chance of freedom of thought or speech at the moment,” he said on his father’s fledgling platform Truth Social, launched after he was kicked out of his preferred environment, where he amassed an estimated 88.7 million followers.
The former president was banned from Twitter after accusations that he used it to incite his followers to attack the US Capitol on January 6 last year.
While Musk said he would lift the ban on Trump Sr.a fellow billionaire said he would stick with Truth Social, a message he repeated on Friday.
“TWITTER deal CLOSED, long live TRUE,” he wrote on Truth Social.
– with AFP
Originally published as Twitter hires elite lawyers to sue Elon Musk over broken deal