Billionaire entrepreneur Elon Musk intends to file a counter-suit against Twitter as he looks to call off his deal to buy the social media platform.
Earlier this month, Musk filed a letter with the Securities and Exchange Commission seeking to break off a deal to purchase Twitter for $44 billion. The letter cited Twitter’s alleged “false and misleading representations” about how many automated accounts, or bots, were on its platform, NPR reported.
Twitter then sued Musk in Delaware’s Court of Chancery in an attempt to compel him to follow through with the deal.
“Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests,” Twitter’s suit said. “Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”
Now, Musk plans to file a counter-suit, the New York Post reported Monday, citing an unnamed source.
“Musk’s lawyers are angling to push a Delaware Court of Chancery judge to grant them more time and power to gather information about bots on Twitter, sources close to the situation said,” the outlet noted. “A protracted legal battle could also potentially drag down the company’s stock, giving Musk more leverage to renegotiate Twitter’s sale price.”
“The core dispute over false and spam accounts is fundamental to Twitter’s value,” Musk’s attorneys wrote in a Friday court filing. “It is also extremely fact and expert intensive, requiring substantial time for discovery.”
On Tuesday, in the first court hearing in Twitter’s lawsuit, Delaware Chancery Court Chancellor Kathaleen McCormick granted Twitter’s request for an expedited trial.