Twitter to retaliate against Elon Musk with the company that invented the Poison Pill defense


Twitter’s board earlier this year adopted the “Poison Pill” defense in a bid to thwart Elon Musk’s hostile takeover attempts. Now, rumor has it that the company has hired the company that invested in the defense technique to argue its case in Delaware court against the Tesla CEO’s decision to walk away from the takeover deal. Also Read – Elon Musk announces additional childcare allowances for employees after having children with one of them

Musk, in a filing with the U.S. Securities and Exchange Commission, said last week he wanted to walk away from the $44 deal to buy Twitter. In the letter, Musk claimed that the microblogging platform did not provide information related to spam or fake accounts on its platform. “Twitter failed or refused to provide this information. Sometimes Twitter ignored Mr. Musk’s requests, sometimes it rejected them for reasons that seem unwarranted, and sometimes it pretended to comply while giving Mr. Musk incomplete or unusable information,” Musk’s attorneys wrote in the filing submitted to the SEC. Also Read – Twitter May Have Better Chances of Winning Against Elon Musk in Latest Deal Fallout

In response to the news, Twitter Chairman Bret Taylor said Twitter’s board plans to sue the SpaceX founder to “enforce the merger agreement.” Also Read – Twitter Challenges Karnataka HC Government, Says Its Content Takedown Orders Do Not Comply With Computer Law

Now, The Verge reports that Twitter has hired Wachtell, Lipton, Rosen & Katz to sue Musk in the Delaware Court of Chancery. The publication notes that the company’s founding partner, Martin Lipton, is credited with coining the “poison pill” defense, which the company’s board of directors adopted earlier this year to prevent Musk from to take over the business.

Musk, on the other hand, reportedly hired Quinn Emanuel Urquhart & Sullivan to argue his case. Interestingly, this isn’t Musk’s first time working with this company. In the past, the company defended Tesla’s CEO in a defamation lawsuit led by British researcher Verns Unsworth over Musk’s “pedo” comment. The company also defended Musk in a case against the SEC when the former tweeted about securing funding to take Tesla private. The case resulted in Musk and Tesla being fined $20 million each.

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