Twitter’s lawyers described as “invalid” Elon Musk’s attempt to withdraw from the purchase of the social network for about US $ 44,000 million, as the parties had agreed at the end of last April.
“The alleged termination of Mr. Musk’s contract (…) is invalid and unlawful, and constitutes a repudiation of his obligations under the agreement. Contrary to the claims in your letter, Twitter has not breached any of its obligations under the agreement,” the social network’s legal team said in a letter sent to the Securities Market Commission (SEC).
Last Friday, Musk informed Twitter that he was renouncing the social network’s purchase contract after receiving no response from the company, when requesting information about the number of false accounts on the platform, as well as how the company to audit and suspend them.
Musk had been publicly questioning the ‘bot’ numbers for weeks, which many analysts saw as an attempt to drive down the tech giant’s share price.
In mid-May, the tycoon decided to temporarily suspend the purchase of Twitter, pending details that support the company’s calculation that fake accounts represent less than five percent of users.
Subsequently, through a letter sent in early June by Musk’s lawyers to the SEC, the billionaire’s legal team considered Twitter’s position as a “substantial breach” of its obligations, for which they warned that Elon Musk “reserves all resulting rights, including your right not to consummate the transaction and your right to terminate the merger agreement.”
Musk and Twitter agreed to a $1 billion penalty to be paid by any party that backed out of the deal.
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Twitter describes Elon Musk’s attempt to withdraw from the purchase of the social network as “invalid”