Twitter files case against Elon Musk, steps to cancel $44 billion deal

Elon Musk pulled out of the deal to buy Twitter last Friday. Twitter has filed a lawsuit against this decision. Elon Musk accused the social media company that the company has failed to provide information about fake accounts. The microblogging platform has already said that it will file a lawsuit against Elon Musk if the deal is not completed and finally that step has been taken. Twitter’s extended trading declined by 7 percent after the news broke. The company is suing Musk for disrupting its operations and destroying stockholder value.

Significantly, Elon Musk has backed out of this deal. Recently, he had said in a letter sent to Twitter that the company has not been able to give enough information to Elon Musk. At the same time, there is also a condition in the conditions that if Elon Musk refuses this deal, then he will have to pay an amount of $ 1 billion as compensation. Elon Musk is already facing a lawsuit in which he has been accused of dumping Twitter shares. In May, Elon Musk said he was putting the deal on hold until the company could prove that spam bots or fake accounts made up only 5 percent of its total users.

In April, Elon Musk did this deal with Twitter for about $ 44 billion at $ 54.20 per share. After that in May, Musk put the deal on hold. He asked his team to investigate Twitter’s claim that it has less than 5 percent bot accounts on the site.

In June, Elon Musk also warned Twitter that he might back out of the deal if the company failed to report its fake accounts. In response, Twitter offered Musk access to its firehose of raw data, which contains millions of tweets daily. Twitter had said that this private data prevents real accounts from being identified as spam.