Elon Musk recently announced that he is no longer interested in buying Twitter. The social networking site, however, is not happy with this. Twitter has decided to hire a top legal firm to sue Musk. Next week, Twitter will file a complaint in Delaware. They have hired the New York-based Wachtell, Lipton, Rosen & Katz LLP law firm to represent them. Moreover, the firm has a great experience in handling merger litigation and has strong links at the Delaware court.
Quinn Emanuel Urquhart & Sullivan LLP will be Musk’s legal counsel. Musk gave the number of fake users as his justification for abandoning the deal. Musk claimed that the number of total false accounts on Twitter is close to 20%, despite the microblogging reporting a figure of less than 5%.
Twitter hires Wachtell, Lipton, Rosen & Kate law firm
Twitter’s chairman said, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk. And plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
In a pact worth about $44 billion, Musk and the social networking firm agreed to be acquired in April at a price of $54.20 per share. Musk, though, placed the agreement on hold in May so that his experts could examine that there are fewer than 5% of users on the site are spam or bots. Musk publicly charged the microblogging site with violating the merger agreement back in June and threatened to leave. As per an earlier filing with the US SEC, Musk will have to pay Twitter a termination fee of $1 billion if he cancels the deal.