Twitter’s stock price increased significantly after Elon Musk declared his interest in acquiring the firm. Additionally, the social network incurred serious losses when the billionaire-backed out of a $44 billion purchase.
The creator was chosen as the defendant in a lawsuit by the American microblogging service’s proprietors, to which the inventor filed a counterclaim.
The Guardian reported on this. According to the source, Musk submitted a 164-page paper demonstrating his innocence to the court on July 29. The world’s richest man claims he turned down the opportunity to purchase Twitter because of untrue information regarding bogus accounts on the social media platform.
The trial is scheduled to start in five days, as far as is known. The first hearing is scheduled for October 17. The company’s auctioneers are requesting that Musk complete the transaction and reimburse them financially for the harm they have sustained.
Representatives from Twitter assert that Musk is obligated by the merger deal, but Elon’s attorney refuted these claims by stating that “the corporation made false and deceptive assertions that Musk relied on the purchase decision, and this is likely to have implications. For the company.”
The social media network has encouraged shareholders to support the merger and scheduled a vote for September 13 to do so.
Twitter CEO Parag Agrawal and Board Chairman Bret Taylor stated in a draught of a letter to investors that “we are committed to finalizing the merger on the price and parameters agreed upon with Mr. Musk.”
Luigi Crispo, the owner of 5,500 shares of Twitter, also sued Musk on Friday. Asserting that the billionaire had violated his fiduciary obligation to Twitter shareholders, Crispo requested the court to order the transaction to close and to grant damages for the losses he was responsible for.
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