According to persons familiar with the situation, Twitter Inc. has retained American law firm Wachtell, Lipton, Rosen & Katz LLP as it gets ready to sue Elon Musk and demand that he complete the $44 billion acquisition of the social media business.
Tesla CEO Elon Musk terminated his contract with Twitter on Friday, claiming the company had not given him information about phony accounts using the network. Twitter Chairman Bret Taylor pledged to sue as a result.
Early this week in Delaware, Twitter intends to bring a lawsuit, according to sources with knowledge of the situation.
While the law firm did not immediately respond to reporters’ requests for comment outside of business hours, Twitter declined to comment.
One of the legal counsels supporting Musk’s 2018 effort to take Tesla private was Wachtell, Lipton, and Rosen & Katz. Musk tweeted that a $72 billion plan to take Tesla, private, had “financing secured,” but he did not make an offer.
For the purpose of resolving allegations of investor fraud made by the US Securities and Exchange Commission, Musk and Tesla each paid $20 million in civil fines, and Musk resigned as chairman of Tesla.
Wilson Sonsini Goodrich & Rosati and Simpson Thacher & Bartlett LLP are two of Twitter’s current attorneys.
