It's over. Musk tried to get out of his agreement to buy the company. Less than a week after Musk sent a letter to the social media company making clear his intention to end the deal, a lawsuit was filed accusing him of acting in bad faith.
According to the lawsuit, Musk refused to honor his obligations to the company because the deal he signed no longer served his interests. The company said it was suing Musk to force him to fulfill his legal obligations and bring the enormous deal to a close.
According to the lawsuit, Musk believes that he is free to change his mind, trash the company, and destroy stockholder value. A long list of material contractual breeches by Musk have cast a pall over the company.
A deal that would have cost Musk around $44 billion was scrapped in April. Since then, the company's stock has tanked and Musk has made public attempts to walk away from the deal. Musk's wealth has been deflating due to the stock tanking. For months, Musk has tried to invoke the issues with bot accounts as an avenue for possibly exiting the deal. Musk was given a flood of user data to try and address his concerns, but it wasn't enough. The conflict has entered the stage of potentially lengthy legal combat. Gizmodo asked for comment, but did not get a reply.
Musk, responding to the news of the lawsuit, wrote, "Oh the irony!"
Musk's "exit strategy" was called bullshit by the suit. The company accused Musk of shifting the goal post around bots, first saying he acknowledged a desire to remove bots from the platform, and then demanding verification that they weren't an issue. Musk was accused of trying to desperately grasp for ways out of the deal once market conditions deteriorated.
The suit states thatMusk wanted an escape. He wasn't given much room by the merger agreement. The agreement gave Musk no out unless there was a Material Adverse Effect or a material covenant violation. Musk had to come up with one of those.
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