Tesla CEO Elon Musk called his friend and former Twitter CEO Jack Dorsey to withdraw from his $44 billion deal to buy the company Dorsey helped found, according to court documents.
Twitter and Musk are going for a trial in Delaware on October 17, which should determine whether Twitter will force the billionaire to buy.
Twitter has recruited a group of tech investors and entrepreneurs affiliated with Musk, including prominent venture capitalist Marc Andreessen and PayPal’s founding chief operating officer David Sacks.
Musk said Twitter failed to provide adequate information on the number of fake or “spam bot” accounts and violated its obligations under the deal by firing senior executives and laying off a significant number of employees. Musk’s team awaits more information on bot numbers that will emerge during the trial court discovery process, while both parties are expected to present evidence.
Twitter argues that Musk’s reasons for backing down were simply to cover up the buyer’s regret. Shortly after Musk agreed to pay more than 38% of Twitter’s stock price, the stock market crashed and shares of the Tesla electric car maker, in which Musk owned most of his personal fortune, were worth more than $100 billion.
Notice was given last week. Dorsey is asked for documents and disclosures about sales, including information about the impact of fake or spam accounts on Twitter’s business and measurement of daily users.
An attorney representing Dorsey did not immediately respond to a message for comment on Monday.