According to legal experts, Twitter Inc. has filed a strong proceeding against Elon Musk moving away from the $ 44 billion deal to buy a U.S. social media company, but instead of a long court battle. You may choose to renegotiate or settle.
A Delaware court, where the dispute between the two parties is set to be filed, has set high standards for allowing acquirers to abandon their transactions. However, experts say that target companies often opt for the certainty of transactions that have been renegotiated at low prices or financial compensation, rather than the nasty court battles that can last for months.
Adam Badawi, a professor of law at the University of California, Berkeley, said: “And this is so annoying that it may not be worth it.”
Mask’s main claim to Twitter violates the transaction because the San Francisco-based company does not share enough information with him to support the claim that spam or fake accounts are less than 5% of active users. It is said that it was done. Twitter endorsed this quote, but also stated that the number of these accounts could be higher.
Musk also said in a letter to Twitter that the company’s misrepresentation of the number of spam accounts could be a “significant negative effect” that would allow him to leave under the terms of the deal. Said.
However, legal experts said Delaware courts see MAE as a dramatic and unexpected event that causes long-term damage to a company’s performance. Transactional contracts such as between Musk and Twitter are so prescriptive that the judge determined that MAE was effectively triggered only once in the history of such proceedings-German Healthcare Group. Fresenius KabiAG will close US generic trading 2018 pharmaceutical company Akorn Inc.
In that case, the court ruled that the guarantee that Fresenius was in compliance with Akorn’s regulatory obligations was inaccurate. It was also found that Akorn withheld the facts about the performance degradation that appeared in the whistleblower’s allegations.
http://www.eyeofriyadh.com/news/details/twitter-has-legal-edge-in-dispute-with-musk-experts Twitter has a legal advantage competing with Mask: Experts