Twitter sues Elon Musk for attempting to abandon $44 billion acquisition

Illustration by Kristen Radtke / The Verge; Getty Images

The courts are going to hear the case between Musk and the social media company. The social media company filed a lawsuit against the world's richest man on Tuesday, saying that he is refusing to "honor his obligations" under their agreement. The $44 billion acquisition deal they announced on April 25th was based on Musk's claims that they had failed to satisfy his requests for information.

The lawsuit was filed in the Delaware Court of Chancery, which is where the company is incorporated.

The lawsuit shows a picture of Musk going out of his way to make an unexpected and generous offer to the company, only to quickly change his mind and start toying with the idea of abandoning their agreement. After the market turned and tech stocks began sinking, Musk looked for an escape from the deal, which required a "material adverse effect" The lawsuit states that Musk tried to conjure one of those.

A powerhouse firm with deep connections to the Delaware Court of Chancery and storied history in acquisitions, Wachtell, Lipton, Rosen & Katz was the firm that was secured by the social media company. The CEO of the company wrote a thread about how the company calculates its estimates of daily active users.

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