GadgetBond

  • Latest
  • How-to
  • Tech
    • AI
    • Amazon
    • Apple
    • CES
    • Computing
    • Creators
    • Google
    • Meta
    • Microsoft
    • Mobile
    • Samsung
    • Security
    • Xbox
  • Transportation
    • Audi
    • BMW
    • Cadillac
    • E-Bike
    • Ferrari
    • Ford
    • Honda Prelude
    • Lamborghini
    • McLaren
    • Mercedes
    • Porsche
    • Rivian
    • Tesla
  • Culture
    • Apple TV
    • Disney
    • Gaming
    • Hulu
    • Marvel
    • HBO Max
    • Netflix
    • Paramount
    • SHOWTIME
    • Star Wars
    • Streaming
Add GadgetBond as a preferred source to see more of our stories on Google.
Font ResizerAa
GadgetBondGadgetBond
  • Latest
  • Tech
  • AI
  • Deals
  • How-to
  • Apps
  • Mobile
  • Gaming
  • Streaming
  • Transportation
Search
  • Latest
  • Deals
  • How-to
  • Tech
    • Amazon
    • Apple
    • CES
    • Computing
    • Creators
    • Google
    • Meta
    • Microsoft
    • Mobile
    • Samsung
    • Security
    • Xbox
  • AI
    • Anthropic
    • ChatGPT
    • ChatGPT Atlas
    • Gemini AI (formerly Bard)
    • Google DeepMind
    • Grok AI
    • Microsoft Copilot
    • OpenAI
    • Perplexity
    • xAI
  • Transportation
    • Audi
    • BMW
    • Cadillac
    • E-Bike
    • Ferrari
    • Ford
    • Honda Prelude
    • Lamborghini
    • McLaren W1
    • Mercedes
    • Porsche
    • Rivian
    • Tesla
  • Culture
    • Apple TV
    • Disney
    • Gaming
    • Hulu
    • Marvel
    • HBO Max
    • Netflix
    • Paramount
    • SHOWTIME
    • Star Wars
    • Streaming
Follow US
Elon MuskTechX / Twitter

Twitter has the opportunity legally in Elon Musk deal argument

By
Shubham Sawarkar
Shubham Sawarkar's avatar
ByShubham Sawarkar
Editor-in-Chief
I’m a tech enthusiast who loves exploring gadgets, trends, and innovations. With certifications in CISCO Routing & Switching and Windows Server Administration, I bring a sharp...
Follow:
- Editor-in-Chief
Jul 9, 2022, 11:51 PM EDT
Share
We may get a commission from retail offers. Learn more
Twitter has the opportunity legally in Elon Musk deal argument
Twitter logo and a decreasing stock graph (Credit: REUTERS/Dado Ruvic)
SHARE

Twitter has a strong legal case against Elon Musk for walking away from his $44 billion deal to acquire the U.S. social media company but could opt for a renegotiation or settlement instead of a long court fight, according to legal experts.

Delaware courts, where the dispute between the two sides is set to be litigated, have set a high bar for acquirers being allowed to abandon their deals. But target companies often choose the certainty of a renegotiated deal at a lower price or financial compensation rather than a messy court battle that can last for many months, three corporate law professors interviewed by Reuters said.

“The argument for settling at something lower is that litigation is expensive,” said Adam Badawi, a law professor at UC Berkeley. “And this thing is so messy that it might not be worth it.”

Musk‘s main claim against Twitter is that the San Francisco-based company breached its deal because it will not share with him enough information to back up its claim that spam or fake accounts constitute less than 5% of its active users. Twitter has stood by this estimate but also said it’s possible the number of these accounts is higher.

Musk also said in a letter to Twitter on Friday that the company’s misrepresentation of the number of spam accounts might be a “material adverse effect (MAE)” that would allow him to walk away under the terms of the deal contract.

But legal experts said Delaware courts view MAEs as dramatic, unexpected events that cause long-term harm to a company’s performance. Deal contracts such as the one between Musk and Twitter are so prescriptive that a judge has ruled that an MAE has validly been triggered only once in the history of such litigation — in the case of German healthcare group Fresenius Kabi AG ending its deal for U.S. generic drugmaker’s Akorn Inc in 2018.

In that case, a court ruled that Akorn’s assurances to Fresenius that it was in compliance with its regulatory obligations were inaccurate. It also found that Akorn had withheld facts about its deteriorating performance that emerged in whistleblower allegations.

Legal experts were dismissive of the idea that inaccurate spam account numbers would amount to an MAE for Twitter on the same level as the problems that plagued Akorn.

“If it goes to court, Musk has the burden to prove more likely than not, that the spam account numbers not only were false, but they were so false that it will have significant effect on Twitter’s earnings going forward,” said Ann Lipton, associate dean for faculty research at Tulane Law School.

Musk also claimed that Twitter breached their agreement by firing two key high-ranking employees, its revenue product lead and general manager of consumer, without his consent as required by their contract.

“That’s probably the only claim that has any purchase,” said Brian Quinn, a professor at Boston College Law School, but he added he did not believe the firings were serious enough to affect Twitter’s business.


Discover more from GadgetBond

Subscribe to get the latest posts sent to your email.

Leave a Comment

Leave a ReplyCancel reply

Most Popular

What is Walmart+ membership?

Walmart+ free trial: when it saves you money (and when it doesn’t)

Apple’s Houston factory now teaches automation and AI

Porsche launches Advanced Package for the Macan, Macan 4 and 4S

Google Sheets Canvas is now available for AI Pro and Workspace plans

Also Read
A dark-textured Samsung Galaxy Card with a gold EMV chip and black Samsung logo rests on top of a light grey Samsung Galaxy Z Fold7 smartphone, set against a dark, mottled grey background.

Meet the Samsung Galaxy Card: perks, metal build, and rewards

Man smiling while retrieving an Amazon package from a blue Amazon Locker inside a store.

How Amazon Locker works for apartments, dorms, and busy schedules

Porsche Sonderwunsch 911 GT2 RS Flachbau RS

Porsche crafts one-off Flachbau RS in tribute to ‘Moby Dick’

Porsche 911 GT3 100 Jahre Nürburgring

Green Hell tribute: Porsche builds a Nürburgring-only 911 GT3

White BMW ALPINA logo on a dark navy background, featuring the brand name around a circular emblem with stylized throttle bodies and a crankshaft.

BMW ALPINA relaunch

Red McLaren McL 6GT concept car parked outside a modern stone-and-glass garage.

McLaren’s McL 6GT brings back the manual supercar

Silver 2027 Rivian R1S electric SUV parked on a city street with trees and buildings in the background.

2027 Rivian R1S adds six-seat layout, R1T gets trail-ready wheels

A collage shows Walmart+ in-store benefits, including a self-service photo kiosk, a customer being helped at a service counter, a Walmart delivery bag on a doorstep, a parent and child with an associate, and an auto care employee in a tire service area.

Walmart+ membership now covers Photo, Money, and Auto Care

Company Info
  • Homepage
  • Support my work
  • Latest stories
  • Company updates
  • GDB Recommends
  • Daily newsletters
  • About us
  • Contact us
  • Write for us
  • Editorial guidelines
Legal
  • Privacy Policy
  • Cookies Policy
  • Terms & Conditions
  • DMCA
  • Disclaimer
  • Accessibility Policy
  • Security Policy
  • Do Not Sell or Share My Personal Information
Socials
Follow US

Disclosure: We love the products we feature and hope you’ll love them too. If you purchase through a link on our site, we may receive compensation at no additional cost to you. Read our ethics statement. Please note that pricing and availability are subject to change.

Copyright © 2026 GadgetBond. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | Do Not Sell/Share My Personal Information.