According to people familiar with the case, Twitter Inc has retained U.S. law firm Wachtell, Lipton, Rosen & Katz LLP as it prepares to sue Elon Musk and force him to finish the $44 billion acquisition of the social media business.
Musk, Tesla’s CEO, cancelled his contract on Friday, claiming that Twitter had failed to share information about false accounts on the network, prompting Twitter’s chairman, Bret Taylor, to threaten legal action.
According to persons familiar with the situation, Twitter intends to launch a lawsuit in Delaware early this week. Twitter declined to comment, and the legal firm did not react immediately to Reuters’ request for comment after work hours.
Wachtell, Lipton, Rosen & Katz was one of the legal advisers for Musk’s plan to take Tesla private in 2018. Musk tweeted that there was “funding secured” for a $72 billion deal to take Tesla private but did not move ahead with an offer.
Musk and Tesla each paid $20 million in civil fines, and Musk stepped down as Tesla’s chairman to settle SEC allegations that he deceived investors.