Court battles loom after Musk cancels Twitter acquisition

11 July 2022

Few would have been surprised by Elon Musk’s decision to withdraw his takeover for Twitter, it seemed the writing had been on the wall for some time. But now the recriminations begin. Twitter directors have said they’ll commence legal action against the Tesla CEO to enforce the deal. At the least Musk may be slugged with a billion dollar fine. A billion dollars is probably coffee money for someone like Musk, but a slew of additional lawsuits may end up costing Musk far more than that.

In addition to the fine for the failed deal, Musk could face serious consequences from the SEC for his antics, which have had major impacts on the several public companies he manages as well as Twitter itself. Musk is an executive at the artificial intelligence firm Neuralink, the electric car company Tesla, the space travel company SpaceX, and the tunnel construction firm the Boring Company. He has in the past faced lawsuits from investors over his erratic behavior and its effects on the companies’ stocks.