Twitter drops 5.6% after Elon Musk walks away from $44 billion takeover bid and a legal battle brews

Twitter stocks tumbled 5.6% as markets opened Monday as Elon Musk's decision to walk away from his $44 billion deal to buy the company sparked a legal battle.

The social media company has now plunged 25% since April 13 - the day that Musk agreed to a takeover deal.

Musk abandoned his deal to buy Twitter in a letter filed by his lawyers with the Securities and Exchange Commission on Friday.

"Twitter has not complied with its contractual obligations," Musk's legal representatives Skadden, Arps, Slate, Meagher & Flom LLP wrote. "For nearly two months, Mr Musk has sought the data and information necessary to 'make an independent assessment of the prevalence of fake or spam accounts on Twitter's platform'."

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