Twitter Lawyers Send Scathing Letter To Elon Musk's Team: Here's What They Said

Twitter Lawyers Send Scathing Letter To Elon Musk's Team: Here's What They Said

Twitter Inc’s TWTR lawyers are calling Elon Musk’s attempts to terminate his $44 billion purchase of the social media platform “invalid and wrongful.”

What Happened: New York-based lawyers Wachtell, Lipton, Rosen & Katz wrote to Musk’s attorneys this week.

“Musk’s and the other Musk Parties’ purported termination is invalid and wrongful, and it constitutes a repudiation of their obligations under the Agreement,'' wrote the law firm representing Twitter.

“The purported termination is invalid for the independent reason that Mr. Musk and the other Musk Parties have knowingly, intentionally, willfully, and materially breached the Agreement.”

The July 10 letter was filed with the U.S. Securities and Exchange Commission. It stated that the purchase agreement is not terminated and asked Musk and other “Musk Parties” to comply with their obligations under it.

See Also: How To Buy Twitter (TWTR) Shares

Why It Matters: Twitter’s lawyer, William Savitt, wrote that the social media firm had breached “none of its obligations” under the agreement.

“​​As it has done, Twitter will continue to provide information reasonably requested by Mr. Musk under the Agreement and to diligently take all measures required to close the transaction.”

Twitter hired Wachtell, Lipton, Rosen & Katz, a firm known for its focus on A-list mergers after Musk moved to terminate the agreement to purchase the Jack Dorsey-founded company.

Musk has retained Quinn Emanuel Urquhart & Sullivan — the same lawyers representing him in an ongoing shareholder lawsuit over his failed attempt to take Tesla private at $420 per share in 2018, according to a prior report.

Musk’s termination of the deal is based on his assertion that Twitter made false and misleading representations to him, while the latter has said it gave him full “firehose” data.

Price Action: On Monday, Twitter shares dropped 11.3% to $32.67 in the regular session, while Tesla shares fell 6.55% to $703.03, according to data from Benzinga Pro.

Read Next: Elon Musk's Sister Believed He Would Go Through With Twitter Deal: 'If He Says He's Going To Do It...'

Photo via Sergei Elagin on Shutterstock

 

 

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