Twitter decided to file a lawsuit against Elon Musk due to the fall in the company's shares after the businessman refused to buy it for $44 billion, Bloomberg reports , citing its own sources. The shares fell 5.3% to $34.95 in Monday trading, which could cut market value by about $1.4 billion, well below Musk's April offer of $54.20 a share.
According to the publication, Twitter turned to the law firm Wachtell, Lipton, Rosen & Katz to sue Elon Musk. Twitter chairman Bret Taylor said the company would take legal action to close the deal "at the price and terms agreed by Mr. Musk." Twitter's forced deal lawsuit could be filed a week later, on Monday, July 18, in a Delaware court.
“They will demand that Musk make a deal, even though he says it’s off, and they have, I would say, more than a 50% chance of winning,” said market strategist Cabot Henderson.
On July 9, it was reported that Elon Musk pulled out of the deal to acquire Twitter. In a letter from his representative, sent to the company, it is said that the reason for this was "a material violation of several provisions of the agreement." In particular, Musk's lawyers pointed out that Twitter was unable or refused to provide information about the platform's fake accounts. The billionaire claims that Twitter misrepresented user data, and the number of spam bots on the platform far exceeded what the company claimed.