With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today.
Twitter Takes Elon Musk To Court
Twitter's lawsuit sets the social media company and the world's richest man up for a lengthy, expensive and high-stakes battle.
(
Soumyabrata Roy/NurPhoto via Getty Images; Patrick Pleul/picture alliance via Getty Images
)
Twitter has sued Elon Musk to compel him to buy the social media company for $44 billion — a deal the world's richest person said last week he was calling off .
The lawsuit , filed in Delaware's Court of Chancery on Tuesday, accuses Musk of hypocrisy and bad faith in his dealings with Twitter. It sets Twitter and Musk up for a lengthy, expensive and high-stakes battle in which a once-reluctant seller will try to force the hand of a now unwilling buyer.
"Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests," the complaint says. "Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away."
Musk and his representatives didn't immediately respond to a request for comment.
Sponsored message
The Tesla and SpaceX CEO struck an agreement to buy Twitter for $54.20 a share in late April. He vowed to make the platform a bastion of unfettered free speech and clean up the long-running issue of spam and automated bots.
But since then, the mercurial billionaire has launched a fight with the company over the prevalence of fake accounts , which he claims, without offering evidence, is higher than Twitter lets on. He's also aimed a near-constant stream of criticism at the company, including targeting executives and complaining about its content moderation decisions and features.
Over the same period, stock markets have fallen, making the price Musk agreed to pay for Twitter look more expensive even as Tesla shares , his main source of wealth, have dropped.
On Friday, Musk notified Twitter he was terminating the deal. He accused the company of misrepresenting the percentage of fake accounts and of failing to provide him with information to verify its estimates. These, he said, were grounds for abandoning the purchase.
Twitter says it's Musk who has violated the deal. "These claims are pretext and lack any merit," the complaint says.
Sponsored message
Copyright 2024 NPR. To see more, visit npr.org .
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Senior Vice President News, Editor in Chief
