The moves come in response to Musk's sudden announcement in July that he would leave just a few months after finalizing the $44 billion agreement in April.
According to The Hill, Twitter claims that Musk's withdrawal caused financial losses for the company.
According to a Securities and Exchange Commission filing, Tesla and SpaceX CEO Elon Musk called off the buyout due to "false and misleading representations" made by Twitter during the agreement processes, as well as the company's failure to provide information on "the prevalence of fake or spam accounts on Twitter's platform."
Musk responded by filing his own lawsuit after Twitter sued him to get him to complete the transaction.
Musk suggested earlier this month that the acquisition would still go through if the social media company provided information on fake and bot accounts.
According to The Hill, the shareholder lawsuit was filed in late July and accuses Musk of using "lame justifications" to cancel the deal.
In a July earnings report, the company attributed revenue declines to "uncertainty due to the imminent acquisition of Twitter by an affiliate of Elon Musk."
According to a filing shared by The Verge, Musk subpoenaed former Twitter CEO Jack Dorsey on Monday in response to Twitter's lawsuit against him.
"In general, I don't think anyone should own or run Twitter." "It wants to be a protocol-level public good, not a company," Dorsey said on Twitter in April.
Elon Musk claimed earlier this month that Twitter failed to disclose litigation against the Indian government.
Musk claimed he was "duped" into signing the deal to purchase the San Francisco-based social media company.
According to the court documents, Musk stated that Twitter should abide by Indian law. Court documents were seen being circulated on Twitter by New York Times Tech Reporter Kate Conger @kateconger. "In 2021, India's information technology ministry imposed new rules that allow the government to investigate social media posts, request identifying information, and prosecute companies that refuse to comply." While Musk supports free speech, he believes that Twitter moderation should "hew close to the laws of the countries in which Twitter operates." read a portion of the legal filings in the Twitter vs Musk lawsuit, as posted in a series of tweets by New York Times tech reporter Kate Conger. Twitter responded to Elon Musk's claims in court filings by saying that it "respectfully refers the Court for their complete and accurate contents." Twitter stated that it "lacks sufficient knowledge or information to form a belief as to the truth of the allegations," and that it "thus denies them on that basis."
Musk also objected to Twitter's failure to disclose litigation against the Indian government in a petition filed in the Karnataka High Court in July. "Twitter claims that it has challenged certain blocking orders issued by the Indian government under Section 69A of the Information Technology Act, directing Twitter to remove certain content from its platform, including content from politicians, activists, and journalists, and that Twitter is legal," the company stated in its response.
Twitter, through its lawyer in the Karnataka High Court, stated that its India business would close if it did not comply with Indian government orders to block content deemed illegal by competent authorities. The High Court issued notices to the Centre and postponed the hearing until August 25th. The microblogging site and the world's richest man are now set to go to trial on October 17 after Musk attempted to back out of his deal to acquire Twitter due to what he claims is a misrepresentation of fake accounts on the site.
Earlier this month, Musk agreed to buy Twitter for USD 54.20 per share in a transaction valued at approximately USD 44 billion. Musk put the deal on hold in May to allow his team to investigate Twitter's claim that less than 5% of accounts on the platform are bots or spam.