The Delaware Court of Chancery is where the lawsuit was filed against Musk.
After entering a binding merger agreement, Musk refused to honor his obligations to the company and its stockholders because the deal he signed no longer served his personal interests, according to the company.
Musk said late last week that he no longer plans to buy the social network and that the company didn't give him enough information to evaluate the deal.
The lawsuit filed on Tuesday marks the beginning of what could be a lengthy legal battle as Twitter seeks to hold Musk to his deal to pay $54.20 per share for the company, and as Musk seeks to be let out of the agreement because of issues with fake accounts.
Legal experts say that the outcome of the dispute could be unpredictable and include a judge forcing Musk to complete the deal, a settlement or Musk walking away without paying anything.
According to the suit, Musk acted against the deal since the market started turning and that it was in bad faith.
Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller friendly merger agreement, Musk apparently believes that he is free to change his mind, trash the company, disrupt its operations, destroy stockholder.
The repudiation follows a long list of material contractual breeches by Musk that have cast a pall over the company, according to the suit.
According to the suit, Musk's claims about why he wants to end the deal are pretexts.
In April, Musk said he would buy the micro-blogging site for $54.20 a share. At Tuesday's close, the stock was just over $34 per share, which is over 37% lower than Musk's offer.
Other social media companies have also seen their share prices fall during the same period.
According to the suit, Musk has created business risk for the company and downward pressure on its share price because of his disrespect for the deal.
The suit was filed to hold Musk accountable.
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