Twitter just hired a big-name law firm to sue Elon Musk for dropping out of $44 billion takeover bid, report says
Twitter has tapped Wachtell, Lipton, Rosen & Katz LLP, one of the world's top corporate law firms, to sue Elon Musk, sources told Bloomberg.
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- Twitter has hired one of the world's top corporate law firms to sue Elon Musk, Bloomberg reports.
- The social media company plans to file a lawsuit against Musk early this week, sources told the outlet.
- The Tesla CEO moved to terminate the $44 billion Twitter deal on Friday.
Twitter has hired Wachtell, Lipton, Rosen & Katz LLP to sue Elon Musk over his move to terminate a $44 billion deal to acquire the app, sources familiar with the matter tell Bloomberg.
The firm specializes in merger litigation and has connections to the Delaware court system, where the case will be tried. Twitter plans to file a lawsuit against the Tesla CEO early this week, the sources told Bloomberg.
Musk himself will be represented by Quinn Emanuel Urquhart & Sullivan LLP. The law firm successfully won a defamation trial for the billionaire back in 2019.
Representatives for Twitter and Wachtell, Lipton, Rosen & Katz did not immediately respond to Insider's request to comment.
Twitter's board said in a statement on Friday that it was "committed to closing the transaction at the price and terms agreed upon," and that it would be pursuing legal action to enforce the deal.
"We are confident we will prevail in the Delaware Court of Chancery," the board said.
Musk's central objection in recent weeks has been over the data and methods used to estimate the number of fake accounts on the platform. His lawyers argue that he did not waive his right to inspect this information when he elected not to look at it before signing the merger agreement.
The lawyers claim that Musk's analysis so far indicates the percentage of false accounts is "wildly higher than 5%" — contrary to Twitter's disclosures in its financial reports.
Legal experts told Insider Musk is facing a considerable legal fight, including a possible $1 billion breakup fee, as he attempts to walk away from the deal.