Twitter Pursues Lawsuit Against Elon Musk: ‘There’s a Real Paradox at The Heart of This Litigation’
By Movieguide® Staff
Twitter recently sued Elon Musk after the Tesla CEO backed out of an agreement to purchase the company for $44 billion.
Should Twitter win the suit, Musk would have to close the original deal.
Movieguide® previously reported:
Due to Elon Musk’s recent decision not to pursue the purchase of Twitter, the major social media site filed a lawsuit.
The Tesla and SpaceX CEO initially planned to move forward with a $44 billion deal to acquire Twitter. However, Musk turned his back on the company after he alleged the company breached “multiple provisions” from their initial contract.
However, Twitter intends to proceed with the deal and ensure it in a court of law.
“We are committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plan to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery,” the Twitter Board told People Magazine.
Musk responded to Twitter’s lawsuit in a meme, ironically posted to his Twitter account.
“They said I couldn’t buy Twitter, Then they wouldn’t disclose bot info, Now they want to force me to buy Twitter in court, Now they have to disclose bot info in court.”
Twitter also claimed that Musk’s comments directed at Twitter and Twitter CEO Parag Agrawal resulted in the company’s low value.
Law experts can’t help but point out the novelty of Twitter’s demands.
“There’s a real paradox at the heart of this litigation,” Todd Henderson, professor at the University of Chicago Law School, said of the looming case.
Greg Varallo, a partner at law firm Bernstein Litowitz Berger & Grossmann, added: “It’s a little weird to have parties that don’t want to get married and say, ‘No you have to get married.'”
The Hollywood Reporter notes that it could be difficult for Twitter to come out as the winner in this case, even if Musk is forced to follow-through with his purchase:
There’s also the question of enforcement if Musk is forced to go through with purchasing Twitter. If he is, Musk would have to go back to the entities financing the deal to make sure they’re still on board. If they’re not, he’d then have to sue them in New York court to make them follow through with their obligations. In this scenario, Musk may have a conflict of interest because he’d be motivated to not have the deal go through.
“He can tell his lawyers, ‘Look, do a [bad] job — we don’t want to win this case,'” Henderson says. “All the while, Twitter is in limbo.”
The aftermath of a ruling ordering Musk to consummate the deal, Henderson says, raises concerns of collateral litigation and slow-walking the financing. The court is unlikely to hold Musk in contempt if it at least appears as if he’s trying to follow through with financing the purchase.
In the short term, Twitter will likely move to fast-track the case. Trial may be scheduled as soon as October.
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Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
