(Fox Business) Twitter shares fell roughly 6% in premarket trading Monday following news that billionaire Elon Musk planned to walk away from his deal to purchase the company for $44 billion.
Musk’s attorney informed Twitter last week that the Tesla CEO was terminating the deal to purchase the social media giant. Musk alleges that Twitter appears to have “made false and misleading representations” regarding the platform, particularly how it handles spam accounts.
“For nearly two months, Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform,'” Musk’s lawyer wrote Friday.
“This information is fundamental to Twitter’s business and financial performance and is necessary to consummate the transactions contemplated by the Merger Agreement because it is needed to ensure Twitter’s satisfaction of the conditions to closing, to facilitate Mr. Musk’s financing and financial planning for the transaction, and to engage in transition planning for the business,” he added.
“Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the lawyer continued.
In a series of tweets on Monday, Musk suggested Twitter will be forced to hand over the relevant information during court proceedings.