According to Bloomberg, Twitter has hired Wachtell, Lipton, Rosen & Katz LLP to sue Elon Musk over his decision to cancel a $44 billion deal to acquire the app. The firm specializes in merger litigation and has ties to the Delaware court system, which will hear the case. According to Bloomberg, Twitter intends to sue Tesla CEO Elon Musk early this week.
Quinn Emanuel Urquhart & Sullivan LLP will be Musk's legal counsel. Back in 2019, the law firm won a defamation trial for the billionaire. Twitter's board of directors said in a statement on Friday that it was "committed to closing the transaction at the agreed-upon price and terms," and that it would take legal action to enforce the deal.
The board stated, "We are confident that we will prevail in the Delaware Court of Chancery." In recent weeks, Musk's main point of contention has been the data and methods used to estimate the number of fake accounts on the platform. His attorneys argue that by declining to review the information prior to signing the merger agreement, he did not waive his right to inspect it.
According to the lawyers, Musk's analysis so far indicates that the percentage of false accounts is "wildly higher than 5%," which contradicts Twitter's financial disclosures.