Popular Billionaire and CEO of Tesla, Elon Musk, has issued a second letter to insist on his stance to terminate the Twitter takeover deal. This development manifested in a filing with the U.S. Securities and Exchange Commission.
According to the filing, the new letter by Elon Musk is “delivering this additional termination notice if the July 8 Termination Notice is determined to be invalid for any reason.” More so, the filing noted that the letter appears legally unnecessary to effect the termination of the deal. However, it says the bases enveloped in the letter must be regarded in addition to and not instead those in the July 8 letter.
The genesis of the lawsuit between Elon Musk and Twitter
Recall that Elon Musk had, in July, announced the termination of his $44 billion Twitter acquisition. The Tesla CEO accused the Twitter board of presenting a misleading figure of fake accounts running on the platform. Elon Musk insisted that the aggregate amounts of fake accounts on Twitter are 5% higher than the figures submitted by the board. Notably, the CEO maintained that the Twitter team falsified the figures to influence his purchase of the platform. The development, according to him, informed his decision to scrap the $44 billion takeover deal.
Shortly after, the Twitter board sued Elon Musk, demanding that he completes the takeover deal. The board filed the suit with the Delaware Court of Chancery. The chairman of the Twitter board, Bret Taylor, dismissed the allegation by Elon Musk. According to him, the committee presented an accurate figure of spam accounts to the Tesla CEO. Taylor said the board is optimistic that the court will stop Elon from terminating the deal.
Musk loses bid to extend trial till February
In late July, the legal tussle took a new shape after Elon Musk, alongside his legal team, suffered a setback in the lawsuit against the Twitter board. As reported, the Chancery Court Chief Judge Kathaleen St. J. McCormick in Delaware directed the hastening of the proceedings. Before the directive, Elon Musk and his legal team urged the court to push the proceedings until February.
However, the judge describes the proposal by Musk as lacking merit. According to the Judge, the elongation of the tussle tends to affect the operations and well-being of Twitter. With this, the court directed the determination of the case within five days in October to see if Elon Musk could walk away from the deal.
However, the case took another dimension after Musk countersued the Twitter board. The development manifested a few days after the directive for the hastening of the case by Judge McCormick. As reported, the CEO filed the new suit to frustrate efforts by Twitter executives to sustain the takeover deal.