The suit was filed to try to prevent Musk from buying the company.
Last week, Musk said he wants to end the deal. According to Musk, they violated their agreement by failing to provide the information he requested to verify the number of accounts on their platform and by conducting layoffs.
His lawyer said that they were looking at whether the agreement would be affected by the stock performance of the company.
After the letter from Musk's lawyer became public, Taylor said the company would take the CEO to court. On Tuesday, the company filed a complaint in the Delaware Court of Chancery.
After the complaint was filed, Musk said, "Oh the irony."
There are some accusations made against Musk.
The lawsuit claims that Musk's public criticisms of the deal have caused downward pressure on its share price.
According to the company, Musk seems to see the company and proposed deal as an "elaborate joke".
Musk has called for the SEC to investigate the business's disclosures of its email marketing practices.
Musk didn't make the meetings to discuss the accounts.
According to the allegations, the CEO and CFO had been trying to arrange time to speak with Musk and his team about the issue. Segal proposed a time to discuss in June, but Musk was against it. Musk later agreed to a time on June 21 but then bowed out and asked Agrawal and Segal to speak with his team about the debt.
Later in June, Segal again offered time to review with Musk how Twitter samples accounts to determine the prevalence of junk mail, but that meeting never occurred despite multiple attempts by the micro-blogging site.
The company noted in its complaint that Musk initially said taking the service private would help cleanse the platform of junk mail. The filing includes images of Musk saying in April that he would defeat the bots if the bid succeeded.
After the market declined, it was claimed that Musk only began demanding proof of the existence of junk mail.
Musk is accused of acting in bad faith by saying that closing the deal depends on the results of his fishing expedition and his ability to secure debt financing
Musk agreed to terms that were said to beseller friendly, according to the social networking site.
The company stated in the complaint that there was no financing contingency or diligence condition. Debt and equity commitments are behind the deal. Musk has personally committed over 30 billion dollars.
According to Musk's lawyer, the recent layoffs could be considered a violation of the contract because they deviated from the normal course of business.
According to the company, it was able to hire and fire employees without Musk's knowledge. According to reports, Musk wanted to prevent the company from hiring or firing employees at the level of vice president or above, but he was able to get rid of that provision before the deal was signed.
There were no closing conditions in the contract, according to the social network. There were no adverse effects at the time of closing and the agreement required a majority vote of the stockholders.
If there is an inaccuracy in its financial reports with the SEC, it doesn't excuse it from closing. It would not include situations impacting the market broadly. Prior to the agreement, Musk-controlled entities said they had conducted a review of the company to their satisfaction.
The agreement requires that it give Musk reasonable access to information. Information must be requested for a reasonable business purpose related to the consummation of the transactions contemplated by this Agreement, according to the company.
If the deal didn't close or would violate laws around privacy, it would be allowed to decline a request.
The market conditions have deteriorated since Musk signed the agreement, which is why he is trying to get out.
The company says that Musk wants to shift the cost of the market downturn to the stockholders.
It is consistent with Musk's past actions like acquiring stock in the company without proper regulatory notice.
The disdain he has shown for the company that one would have expected Musk to protect is tracked.
A request for comment was not responded to by Musk.
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There is a timeline of the Musk takeover.
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