Twitter hires top legal firm to sue Elon Musk for pulling out of $44 billion deal

The conflict between Tesla CEO Elon Musk and social networking site Twitter seems to be headed for a legal battle after Musk pulled out of the $44 billion takeover deal. While the takeover deal was in the works for quite some time, Musk cited the number of fake users as his reason behind not going through with it. While Twitter puts the number below five per cent, Musk said that the percentage of total fake users on Twitter is somewhere near 20 per cent. Twitter has since threatened to sue Musk and they have now hired United States-based law firm Wachtell, Lipton, Rosen & Katz LLP.

After Musk said that the deal was terminated in the latest SEC filing citing a lack of proof when it comes to the number of fake users on Twitter, the company’s Bret Taylor threatened to sue him. In his tweet, he also said that they may file a lawsuit in Delaware this week.

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Incidentally, this was the same law firm who were appointed legal advisers for Musk’s bid to take Tesla private in 2018. While Musk made his motivation extremely clear and even tweeted that he had "funding secured" for a $72 billion deal to take Tesla private, the move did not take place.

As a result, both Musk and his company had to pay around $20 million in civil fines, and it also resulted in the billionaire stepping down as the chairman of the company. There was uproar among the investors, but it saved them from the Securities and Exchange Commission claims.

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(With inputs from agencies)