“That infringement threatens not just significant monetary damages, but the potential for injunctive relief that would threaten Twitter’s ongoing business as currently operated.”
This feels like an extremely important part of this story that no one is even discussing. What ended up happening here?
“Mr. Zatko alleges that:
Twitter’s platform is built in significant part on the misappropriation and infringement of third party intellectual property”
https://twitter.com/sparklingruby/status/1620625924097179649?s=20&t=8yV-HY-qn0MdTaQQOI5iTQ
There aren't any more shareholders. Elon was buying them out too. That's how he was able to buy it: he tendered an offer directly to the shareholders. The board then had a fiduciary and legal responsibility to put it to a vote for the shareholders. They accepted it, and there was nothing the board could do at that point.
Some of them rolled their shares into the new twitter that is private. I want to say that saved him like 2 billion or something. Not quite sure.
In ordinary fraud cases, you sell me something based on fraud, I sue you for rescission, you give me my money back. How does that work with a publicly traded company? How can you rescind a contract in this circumstance? Given that there isn’t anyone with deep enough pockets to pay the unlicensed IP use damages, there’s also nobody to get your 50 billion back from. That’s fucked. No idea what could happen there.