Highlights
- Twitter claimed that the company suffered financial losses as a result of Musk's withdrawal
- Musk called off the buyout due to what he claimed were "false and misleading representations"
- Twitter sued Musk to get him to complete the transaction
Elon Musk has called for the dismissal of a shareholder lawsuit against him for cancelling his multibillion-dollar Twitter buyout deal and subpoenaing the social media company's former CEO.
According to media reports, Twitter claimed that the company suffered financial losses as a result of Musk's withdrawal.
In July, Musk suddenly announced that he would leave just a few months after finalizing the $44 billion agreement in April.
According to a Securities and Exchange Commission filing, the CEO of Tesla and SpaceX called off the buyout due to what he claimed were "false and misleading representations" made by Twitter during the agreement processes and the company's failure to provide information on "the prevalence of fake or spam accounts on Twitter's platform."
Twitter sued Musk to get him to complete the transaction, and Musk responded by filing his own lawsuit.
Earlier this month, Musk made a suggestion that the acquisition would still go through if the social media business provided details on fake and bot accounts.
The Hill reports that the shareholder lawsuit was filed in late July and reportedly criticizes Musk for using "lame justifications" to cancel the deal.
The company attributed revenue declines to "uncertainty due to the imminent acquisition of Twitter by an affiliate of Elon Musk" in a July report on its quarterly earnings.
In response to Twitter's lawsuit against him, Musk subpoenaed former Twitter CEO Jack Dorsey on Monday, according to a filing shared by The Verge.
"In principle, I don't believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company," Dorsey said on Twitter in April.
Earlier this month, Elon Musk claimed that Twitter failed to disclose litigation against the Indian government.
Musk claimed that he was "hoodwinked" into signing the deal to buy the San Francisco-based social media company.
The microblogging website and the world's richest man are now heading to trial on October 17 after Musk sought to abandon his deal to acquire Twitter over what he says is a misrepresentation of fake accounts on the site.
Earlier in April, Musk reached an acquisition agreement with Twitter at USD 54.20 per share in a transaction valued at approximately USD 44 billion.
In May, Musk put the deal on hold to allow his team to review the veracity of Twitter's claim that less than 5 per cent of accounts on the platform are bots or spam.
(With inputs from ANI)
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