Binance sued over Elon Musk’s decision to back out of Twitter purchase

Twitter has filed a lawsuit against Binance’s unit over the financing allocated to Elon Musk’s takeover of Twitter. сообщает Bloomberg.

In May, the trading platform provided the businessman $500 million for the deal. According to court documents, Twitter’s lawyers want to know the terms of the investment and the billionaire’s efforts to syndication of funds.

The subpoena also named Musk’s potential creditors, including Factorial Funds, Benefit Street, Bandera Partners, Founders Fund Growth II Management, a number of Silicon Valley investors, financial advisers from Credit Suisse, Morgan Stanley, Goldman Sachs, JPMorgan and the boutique investment bank Allen & Co. Later on, Tesla, SpaceX and Citadel founder Ken Griffin joined the list.

Twitter is seeking information from them about private negotiations with Musk regarding the sale of the social network, as well as documentary evidence of the billionaire’s claims that the platform’s real-user numbers are understated.

In the requests, Elon Musk’s tweets from May 15 and 17 are cited, in which he stated that the share of bots in Twitter may exceed 90% of daily active users.

Twitter also requested additional information from Musk’s lawyers at Skadden, Arps, Slate, Meagher & Flom and McDermott Will & Emery.

The Delaware Court of Chancery has allotted Twitter a five-day trial, due to begin on October 17.

Earlier in April 2022, Elon Musk acquired a 9.2% stake in Twitter, and later proposed to acquire the company at a price of $54.20 per share. The management of the social network agreed to the terms.

The billionaire explained the initiative as a desire to create an “inclusive arena for freedom of speech.”

However, in May Musk suspended the purchase process after reports of inflated audience metrics. After this, Twitter shareholders filed suit over the “chaotic process” of the takeover, accusing the Tesla chief of market manipulation.

In July, Musk stated that the purchase agreement had been terminated.

In the same month, Twitter filed suit against the Tesla chief over his withdrawal from the deal. The platform intends to compel the entrepreneur to fulfil his obligations and complete the purchase.

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