Twitter has responded to Musk’s withdrawal by bringing in some legal heavy hitters. San Francisco-based law firm Wachtell, Lipton, Rosen & Katz has reportedly been given the task of handling the legal battle against Musk. The firm had previously represented Musk in a case brought against him by Tesla shareholders. Musk was accused of improperly bailing out SolarCity when Tesla acquired it in 2017. When the case was settled and Musk was cleared of any wrongdoing last year, the billionaire was being represented by another law firm: Cravath, Swaine & Moore.
Wachtell, Lipton, Rosen & Katz operates the largest legal office in Delaware, where most U.S. corporations are based and where the case against Musk has been filed (via Delaware.gov). Through the case, Twitter — which had seen its share price drop rapidly as the failed takeover progressed — may be trying to seek more than the $1 billion break fee that had previously been agreed upon and could attempt to force the purchase through.
Some legal experts are pessimistic about Musk’s chances. Equity analyst Brent Thill has labeled Musk’s claims of excessive bots on the platform as “an excuse to back out of the deal,” saying Twitter had “long made its 5 per cent figure public.” Similarly, Columbia law professor Eric Talley highlighted how Twitter’s figures are clearly labeled estimates and described Musk’s arguments as “notably thin.” The professor goes on to say Musk’s actions could be a kind of “bargaining strategy” and while some requests to share data could be reasonable, the vast amount Musk and his team are demanding is not (via The Financial Times).
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