To force Elon Musk to complete the $44 billion acquisition of the social media company, Twitter has hired US law firm Wachtell, Lipton, Rosen and Katz to sue the world’s richest man, news agency Reuters reported quoting people familiar with the matter.
Tesla CEO Musk terminated his deal on Friday, saying Twitter had failed to provide information about fake accounts on the platform, after which Twitter’s chairman, Bret Taylor, vowed a legal fight. Now, Twitter is planning to file a law suit against Musk, early this week in Delaware, people familiar with the matter told Reuters. Twitter’s existing legal team includes Simpson Thacher and Bartlett LLP and Wilson Sonsini Goodrich and Rosati. The possible unraveling of the deal is just the latest twist in a saga between the world’s richest man and one of the most influential social media platforms.
Much of the drama has played out on Twitter, with Musk – who has more than 95 million followers – lamenting that the company was failing to live up to its potential as a platform for free speech. Wachtell, Lipton, Rosen & Katz was one of the legal advisers for Musk’s plan to take Tesla private in 2018. Musk tweeted that there was “funding secured” for a $72 billion deal to take Tesla private but did not move ahead with an offer. Musk and Tesla each paid $20 million in civil fines, and Musk stepped down as Tesla’s chairman to resolve US Securities and Exchange Commission claims that he defrauded investors. (With inputs from agencies)