News In Brief Business and Economy
News In Brief Business and Economy

Musk Subpoenas Ex-CEO Jack Dorsey Before Legal Battle

Share Us

Musk Subpoenas Ex-CEO Jack Dorsey Before Legal Battle
23 Aug 2022
min read

News Synopsis

Elon Musk has requested that a shareholder lawsuit against him be dismissed for cancelling his multibillion-dollar purchase offer and subpoenaing Twitter's former CEO Jack Dorsey. This comes as Musk defends himself against a Twitter lawsuit demanding that he complete the takeover, following his declaration in July that he would quit just a few months after sealing the $44 billion transaction in April.

According to sources, Twitter has subpoenaed a number of tech investors and entrepreneurs associated with Musk, including notable venture capitalist Marc Andreessen and David Sacks, PayPal's original chief operating officer. Twitter and Musk are set to go to trial in Delaware on October 17 to see whether Twitter can force the billionaire to go through with it.  

According to a Securities and Exchange Commission filing, Tesla and SpaceX CEO Elon Musk called off the buyout due to "false and misleading representations" made by Twitter during the agreement processes, as well as the company's failure to provide information on "the prevalence of fake or spam accounts on Twitter's platform." Musk retaliated by bringing his own lawsuit after Twitter sued him to persuade him to finalise the acquisition.

Musk suggested earlier this month that the deal might still go through if the social media company gave information on false and bot accounts. According to The Hill, the shareholder action was launched in late July and accuses Musk of using "lame reasons" to abandon the agreement. In a July financial report, the business ascribed sales decreases to "uncertainty owing to the anticipated acquisition of Twitter by an associate of Elon Musk."

According to a document, Musk subpoenaed former Twitter CEO Jack Dorsey on Monday in response to Twitter's lawsuit against him. "In general, I believe that no one should own or operate Twitter. It aspires to be a protocol-level public good rather than a firm "Dorsey stated this on Twitter in April. Earlier this month, Musk said that Twitter failed to disclose litigation against the Indian government.

TWN In-Focus