Tesla's CEO Elon Musk stated over the weekend that he was going to back out of the US$44 billion deal to purchase the social media site, citing Twitter's refusal to share information that he felt was necessary, notably about bot accounts.
The business specializes in merger litigation, and according to Bloomberg, it has "connections to the Delaware court system, where the case will be tried."
Based on the same sources, Twitter intends to sue the controversial CEO this week.
Musk terminated his contract with Twitter on Friday (July 9), claiming that the company had not provided information regarding false accounts using its network. Twitter's chairman Bret Taylor then pledged to take legal action.
Following Musk's declaration, the business declared that it was "committed to closing the transaction at the price and terms agreed upon," a position it had taken even since Musk first expressed concerns about the volume of bots on the platform in May.
According to people familiar with the situation, Twitter intends to file a lawsuit in Delaware early this week.
"We are confident we will prevail in the Delaware Court of Chancery," Twitter said.
The Delaware courts set a high threshold for those purchasing businesses to back out of the arrangement, according to legal experts in the United States, giving the company the advantage in any future legal disputes.
"Musk is on very weak legal grounds. Twitter appears to have given him access to just about everything to satisfy his desire to know the percentage of bots among its users," John Coffee, a professor of law at Columbia University, told The Guardian
Users of the network are currently having a good time making fun of Musk after learning last week that he had two more children before having his second child with musician Grimes in November 2021 and that he tried to get the contract voided.
According to author Erin Ryan, in reference to his nine children from four different moms, "Musk signals he may - for the first time ever - pull out."
Mike Drucker, a writer, and comedian, also took aim at the billionaire. "I can't believe Elon Musk failed to deliver on a giant promise. Absolutely stunned by this development that has happened literally every time he's promised something," he tweeted.
Twitter declined to comment, and the law firm did not respond immediately to Reuters' request for comment after business hours.
Simpson Thacher & Bartlett LLP and Wilson Sonsini Goodrich & Rosati are among Twitter's current legal counsel.
