As smart as human beings are known to be, they can’t save themselves from making mistakes. This has been proven time and again throughout our history, with each testimony practically forcing us to look for some sort of a defensive cover. We will, on our part, find that exact cover once we bring dedicated regulatory bodies into the fold. Having a well-defined authority within each and every area was a game-changer, as it instantly compensated for a lot of our shortcomings. However, the utopia was pretty short-lived, and if we are being honest, it was all because of technology. You see, the moment technology and its layered nature took over the scene; it gave everyone an unprecedented chance at exploiting other people’s missteps. This expectantly nullified our entire progress and sent us back to square one, but fortunately enough, it won’t be the last time we’ll see the coin flip. In fact, another power shit is already underway, and a recent lawsuit against Elon Musk might just end up solidifying it moving forward.
Twitter has officially sued Elon Musk in an effort to force him to complete his top-dollar purchase of the company. Filed in Delaware court of Chancery, the lawsuit comes after Musk shared an intention to terminate the well-documented acquisition because of his unresolved concerns about bots and spam accounts. Now, if Twitter emerges successful in this fight, it will either come back with the $44 billion that Musk initially promised or it could also pick up compensation worth $1 billion for killing the sale. Of course, there are other possible outcomes in play, covering scenarios like settlement, renegotiation of the purchase price or Musk walking away without paying even a single penny.
“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to use his best efforts to get the deal done,” the complaint states. “Now, less than three months later, Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
Since agreeing a sale to Musk, Twitter has seen its shares tank by more than 30%, so it’s easy to see why the buyer is so keen on reworking the figure. However, this hesitation also notably stems from a sharp downturn in Tesla’s share value, therefore hampering the company’s ability to finance a deal of such size.
Coming back to the lawsuit, alongside the primary complaint, Twitter has also filed a special motion to expedite proceedings in the case.
“Expedition is essential to permit Twitter to secure the benefit of its bargain, to address Musk’s continuing breaches, and to protect Twitter and its stockholders from the continuing market risk and operational harm resulting from Musk’s attempt to bully his way out of an airtight merger agreement,” the filing states.
