On Tuesday, Twitter announced that it has sued the CEO of Tesla, Elon Musk in the Delaware Court of Chancery. The law suit is for the termination of his $44 billion takeover bid.
This change happened some days after Mr Elon allegedly disclosed that he terminated his Twitter takeover deal.
On Friday, Twitter announced that its board intends to take legal action against Elon, to enforce the agreement between the two parties.
The Tesla CEO is expected to pay a sum of $1 billion breakup fee to twitter if he insists on walking away from the deal.
Twitter said Mr Elon Musk, has refusesed to honor his accordance with Twitter and its stockholders after entering into a binding merger agreement, claiming that the deal he signed no longer serves his personal interests.
They claim that he has quite the reputation for material contractual breaches and that has casted a pall over Twitter and its business.
Twitter claims to have filed this law suit, to stop Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions.
Currently, Mr Elon Musk allegedly owns 73,486,938 shares of Twitter, which is 9.2 per cent stake in the company, according to the US Securities and Exchange Commission.
On Thursday, April 14, Mr Elon said he offered to buy the whole of twitter (100 per cent) for $54.20 per share in cash.
If this sale was completed, the company would have become privately held.
It was set to be the biggest social media platform purchase, which was going to surpass the $26.2 billion LinkedIn buyouts by Microsoft.
On Thursday, May 5, Mr Musk disclosed that he has secured $7 billion in new funding to fund the takeover.
However, he later announced that he has put a pause on the takeover. He said that he needed to resolve some concerns over the amount of fake/spam accounts on the platform.