Elon Musk Is Getting Sued In A Delaware Court
By: Tye Richmond
Welp people it looks like Elon Musk will not be buying twitter after all.
Twitter sued Tesla CEO Elon Musk on Tuesday to force him to complete the $44 billion acquisition of the social media company.
Musk and Twitter have been bracing for a legal battle since the billionaire said Friday, he was backing out of his April agreement to buy the company.
But it looks like the legal fight will take place right here in our back yard in Delaware. According to an NPR article, “On Tuesday, Twitter sued billionaire Elon Musk in the Delaware Court of Chancery, a hub of high-profile corporate litigation that is more than two centuries old which descended from the High Court of Chancery in Great Britain.”
The article continues, “In a 62-page lawsuit, the company asked the court to order the world’s richest man to complete a $44 billion takeover deal he has been trying to back out of.”
“Musk is no stranger to the Delaware Court of Chancery. Last year, the Tesla CEO prevailed in a suit brought by the company’s shareholders. The court also has decided cases involving the likes of Facebook, Goldman Sachs, and McDonald’s.”
BREAKING: Twitter has sued Elon Musk in a Delaware court, alleging he violated the $44 billion acquisition agreement.
— Watcher.Guru (@WatcherGuru) July 12, 2022
The court was established in 1792, and deals with “corporate matters, trusts, estates, and other fiduciary matters, disputes involving the purchase and sale of land, questions of title to real estate, and commercial and contractual matters in general.”
The Delaware Court of Chancery is more specialized than most courts in the U.S. While other courts consider cases in which one party is seeking monetary damages from another, the Court of Chancery does not.
According to wdel.com twitter released a statement on Musk saying, Musk “has been acting against this deal since the market turned, and has breached the merger agreement repeatedly in the process,” the suit charges. “He has purported to put the deal on ‘hold’ pending satisfaction of imaginary conditions, breached his financing efforts and obligations in the process, violated his obligations to treat requests for consent reasonably and to provide information about financing status, violated his non-disparagement obligation, misused confidential information, and otherwise failed to employ required efforts to consummate the acquisition.”
Twitter’s lawsuit alleges that the company “has suffered and will continue to suffer irreparable harm” as a result of Musk’s contractual breaches that “cast a pall over Twitter and its business.”
Delaware will be at the heart of the social media world when this lawsuit is determined and could change the face of social media depending on the decision of the court.
