Elon Musk has pulled out of a deal to take over Twitter for $44bn (£36.5bn).
In a statement provided to the US Securities and Exchange Commission, representatives for Mr Musk said Twitter breached terms of an agreement and “appears to have made false and misleading representations”.
They said Twitter had also failed to provide data and information requested by Mr Musk to enable him to “make an independent assessment of the prevalence of fake or spam accounts” on the social media platform.
“Sometimes Twitter has ignored Mr Musk’s requests, sometimes it has rejected them for reasons that appeared to be unjustified, and sometimes it has claimed to incomplete comply while giving Mr Musk or unusable information,” the statement continued.
As a result of Mr Musk’s decision, shares of Twitter fell 7% in extended trading, well below the 54.20 dollars that he had offered to pay for the company back in April.
The terms of the deal require Mr Musk to pay a $1bn (£830 million) break-up fee if he does not complete the transaction.
However, it seems Twitter’s board is not planning to accept the payment and will instead take legal action.
Twitter’s chairman Bret Taylor tweeted that the company is “committed to closing the transaction on the price and terms agreed upon with Mr Musk and plans to pursue legal action to enforce the merger agreement”.
“We are confident we will prevail in the Delaware Court of Chancery,” he added.
The possible unraveling of the agreement is just the latest twist in a saga between the world’s rich man and one of the most influential social media sites.
Much of the drama has played out on Twitter, with Mr Musk – who has more than 95 million followers – lamenting that the company was failing to live up to its potential as a platform for free speech.
The chief executive of Tesla had previously threatened to halt the deal unless the company proved spam and bot accounts were fewer than 5% of users who see advertising on its service.
Last month, Twitter gave Mr Musk access to its “firehose”, which is its storage location of raw data on hundreds of millions of daily tweets.