Twitter appoints Wachtell as its legal counsel to fight Musk after cancelling a $44 billion deal

In order to push Elon Musk to complete the $44 billion acquisition of the social media giant, Twitter Inc. (TWTR.N) has retained the legal services of Wachtell, Lipton, Rosen & Katz LLP in the United States, according to people familiar with the situation.

Tesla CEO Elon Musk terminated his contract with Twitter on Friday, claiming the company had not given him information about fake accounts using the platform. Twitter Chairman Bret Taylor pledged to sue as a result.

The Tesla CEO has threatened to walk away from the deal if the company cannot demonstrate that fewer than 5% of its daily active users are automated spam accounts. Musk’s staff has expressed concerns about “spam bots” on the platform.

According to Musk, Twitter severely undercounted the number of these “spam bots” using its platform. According to numerous reports at the time, Twitter reportedly gave Musk access to its “firehose” of raw data on hundreds of millions of daily tweets, though neither the business nor Musk verified this.

During a call with executives on Thursday to discuss the company’s fake and bot accounts, Twitter stated that it removes 1 million spam accounts daily.

During the call, Twitter stated that the spam accounts make for significantly less than 5% of its active user base each quarter. IP addresses, phone numbers, and location are examples of private data that isn’t accessible to the general public and isn’t included in the data “firehose” provided to Musk. According to Twitter, this sensitive information helps prevent falsely labeling actual accounts as spam.