Elon Musk announced on July 8 that he was pulling out of the arrangement because Twitter allegedly broke the terms by failing to share information about phony accounts on the network.
Twitter claims that the false accounts serve as a diversion from the real problem, which is the agreement's conditions.
Additionally, Musk had stated that he was leaving because of Twitter's failure to "preserve substantially intact the material components of its current business organization" by firing high-ranking executives and one-third of the talent acquisition team.
The subpoenas issued by Twitter centered on what they claimed to be Bob Swan's termination from his position as an operating partner at the venture capital company Andreessen Horowitz, which had initially spearheaded Musk's efforts to close the deal financially. According to Twitter's lawsuit, he was replaced by Antonio Gracias, a seasoned Musk associate.
Legal experts argue that Musk cannot be forced to complete the transaction if financing fails, providing he is not the reason for the failed funding.
The subpoenas are a component of Twitter's lawsuit against Musk, which aims to compel him to honor the agreement at the $54.20 per share price. On October 17, a five-day trial is set to start in the Delaware Chancery Court.
According to experts, the subpoenas show Twitter is interested in learning what lenders, investors, and advisers were saying about Musk's actions after he signed the contract in late April. Minor Myers, a professor at the UConn School of Law said, "they suspect that behind the scenes he's been conspiring to blow the whole thing up."
No one could be reached to speak with Musk or Twitter representatives. Morgan Stanley chose not to respond. An inquiry for comment was not immediately answered by Brookfield. The subpoenas ask for emails and records related to the transaction, it's funding, and any details on "bot," or fake, Twitter accounts. Additionally, they ask the receivers if they have any knowledge of how fluctuations in the stock price of Musk's electric vehicle manufacturer Tesla may affect the deal.
Boston College Law School's Brian Quinn remarked that Twitter appears to be asking whether "Gracias had any role in getting financing done or if he was just supposed to slow things down".
Investors were asked to provide contacts between close friends of Musk, like Steve Jurvetson, a former Tesla board member and current director of SpaceX, the privately owned rocket firm that Musk founded and currently heads, and those regarding the Twitter acquisition.