Elon Musk Sues Twitter Investor Over $44 Billion Deal Failed

BUT Twitter Inc. shareholder hit Elon Musk with the proposed class actioneffectively joining the tech giant’s bid to stop the world’s richest man from backtracking on his pledge to pay $44 billion to acquire the influential social media platform.

The lawsuit was filed in the Delaware Court of Chancery — in the same forum set to hold a fast track trial in October of Twitter’s lawsuits against Musk — by an investor who holds 5500 Twitter shares. In addition to Musk, he names two “corporate acquisition companies” associated with the deal as defendants.

The lawsuit, filed on July 29, targets Musk’s “flimsy case for violating his contract,” accusing the billionaire of fabricating excuses to refuse the ransom. Like Twitter’s previous lawsuit, it seeks a court order obliging Musk to complete the deal.

Musk formally responded to Twitter’s lawsuit on July 29 in a court document that remains sealed.

Tesla Inc., the electric vehicle maker that Musk runs, did not immediately respond to a request for comment on his behalf on Monday. Tesla does not appear as a defendant.

Investor Luigi Crispo’s accusations echo Twitter’s claim that Musk is using false concerns about spam and “bot” accounts as a bogus excuse to pull out of a deal without legitimate legal grounds.

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Musk, meanwhile, says Twitter has violated its obligation to provide truthful information about transactions by claiming without evidence that bots make up about 5% of its daily users.

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