Elon Musk vs. Twitter Lawsuit: Experts Reveal Why Tesla CEO Could Be Forced To Complete $44 Billion Purchase

Elon Musk has recently received a lawsuit against him from Twitter, wherein the social media company accused him of breaching an agreement to procure the platform for $44 billion.

Musk tried to back out of the acquisition due to a number of reasons, such as fake accounts and claiming that the company did not give him enough information about the issue. However, experts noted that there could be a huge chance that Musk will be forced back into the Twitter deal that is worth $44 million.

Clayton Hasbrook, attorney at OklahomaLawyer, noted that there is a "good chance" that Musk will be forced back into the deal at the "agreed-upon share price." Hasbrook added that the legal battle is set to take place in Delaware's Court of Chancery, which has a record of forcing companies to follow through with its orders.

The lawyer cited an incident in 2012, wherein the court ordered ZST Digital Networks and forced it to turn over records and financial books. Hasbrook noted that the court at the time even sought the arrest of company executives if they failed to comply.

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Elon Musk Twitter Lawsuit

Twitter seeks in its lawsuit to show that it has the right to sue Musk to close the deal. It also intends to show that Musk's claims against them had no merit, according to The New York Times report.

Ben Michael, Attorney at Michael & Associates, noted that there is a "pretty good chance" that the Tesla CEO will lose the case. Michael echoed Hasbrook's opinion that Musk will be forced to complete the Twitter purchase.

"We're also seeing Wall Street come to the defense of Twitter, and it appears that very few if any, major players are supporting Musk," Michael said.

The company said in its lawsuit that it provided Musk with the required disclosure on spam accounts.

Michael also noted that Musk has made multiple claims that Twitter has breached the contract, which the company has responded to "with explanations as to how Musk is incorrect."

Hasbrook added that Musk's "erratic behavior" will also work against him in this case.

"Musk is very active on his Twitter account and has made many questionable tweets while his deal was still ongoing. Such behavior might prove to be detrimental to his case."

Elon Musk Buys Twitter

Musk earlier promised that he will crackdown on crypto spam bots and also proposed dropping ads from the service, as reported by Independent.

David Reischer, Esq. / Attorney & CEO of LegalAdvice.com, said that it is unlikely the billionaire will be able to walk away from the deal, especially since he publicly announced that Twitter's bots were fraudulent and was another factor why he was buying Twitter.

Reischer also believes that Musk may have a difficult time terminating the merger agreement unless there is a "Material Adverse Effect," which will allow Musk to walk away if Twitter breached the agreement and it created a Material Adverse Effect.

"The Material Adverse Effect typically is defined as any event or condition that has a material adverse effect on the business, financial condition or results of operations of the company," noted Reischer.

Reuters reported that Kathleen McCormick will be the judge overseeing the lawsuit. She has scheduled the first hearing for July 19.

This article is owned by Latin Post.

Written by: Mary Webber

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