Twitter sues Musk, trying to force him to buy the company

SARAJEVO, (Patria) - Twitter has filed a lawsuit against Elon Musk, attempting to force him to buy the company, marking the beginning of a legal battle between Twitter and the world's richest man.

In the lawsuit, Twitter is asking the court to order Musk to complete the purchase of Twitter at the agreed-upon price of $54.20 per Twitter share.

"After orchestrating a public spectacle to lure Twitter into a contract and then seeking to back out of the deal, Musk apparently believes that he - unlike all other parties subject to Delaware contract law - is free to re-negotiate, destroy the company, disrupt its business, destroy shareholder value, and walk away," the lawsuit states, listing a long series of contract breaches by Elon Musk that have tarnished Twitter and its business.

Stock Price Decline
Twitter shares have fallen by more than 8 percent in the last month.

Twitter shares fell by more than 11 percent on Monday, to one of their lowest levels since 2020, as investors anticipated the upcoming legal battle. Since Twitter accepted Musk's offer on April 25, its shares have lost more than a third of their value as investors became increasingly skeptical that the deal would be completed on the agreed terms. In contrast, the Nasdaq technology stock index has fallen about 12.5 percent in the same period.

Recall, Musk said on Friday that he would seek to terminate his $44 billion deal, claiming the social media company had breached multiple provisions of the agreement.

Twitter subsequently announced that it had not breached any of its obligations under the merger agreement with Tesla Inc. CEO Elon Musk.

A Long and Expensive Lawsuit

The lawsuit is likely to be lengthy and costly, involving months of expensive hearings and negotiations by elite lawyers. A resolution is far from certain – Twitter could win, but if it loses, Musk might walk away by paying only a termination fee. Or the two sides could renegotiate or settle, reports Index.