A setback suffered this Monday, July 6, the possible purchase of Elon Musk a Twittersince lawyers for the technology tycoon sent a letter to the executives of the social network accusing them of “material violation”, for “resisting and frustrating” their right to information about false accounts on the platform.
“Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” the letter, signed by Skadden attorney Mike Ringler, says.
Shares of Twitter fell 5% in premarket trading on Monday.
In Monday’s letter, Musk’s attorney wrote that the merger agreement requires Twitter to provide the data Musk requested and refuted the company’s alleged claim that it is only required to provide information for the limited purpose of helping to close the deal. transaction.
“Instead, Mr. Musk has the right to seek, and Twitter is obligated to provide, information and data for, among other things, ‘any reasonable business purpose related to the consummation of the transaction,'” the letter says.
“At this point, Mr. Musk believes that Twitter is transparently refusing to meet its obligations under the merger agreement, which is causing further suspicion that the company is withholding requested data due to concerns about what that Mr. Musk’s own analysis of that data will uncover,” he continues.
According to the letter, Musk would agree to ensure that anyone reviewing the data would be bound by a nondisclosure agreement and would not use any “competitively sensitive information” if the deal doesn’t close.