Tesla and SpaceX CEO Elon Musk lost his fight to delay Twitter's lawsuit against him as a Delaware judge set a trial for October on Tuesday

Twitter allowed to fast-track lawsuit against Elon Musk for waiving $44 billion takeover, judge says

‘Delay threatens irreparable harm’: Judge grants Twitter an expedited trial against Elon Musk in October due to ‘cloud of uncertainty’ over tech giant as company slams billionaire for ‘attempting of sabotage” by withdrawing from the $44 billion deal

  • Tesla CEO Elon Musk has lost his fight to delay Twitter’s lawsuit against him because the company argues he should keep his word to buy it
  • Musk, 51, requested a trial date in February 2023, but a Delaware judge denied it
  • He backed out of a $44 billion takeover deal with the social media giant, citing issues with fake accounts on the platform
  • Twitter had asked to speed up to September, but got an October date

Tesla CEO Elon Musk lost his fight to delay Twitter’s lawsuit against him as a Delaware judge held a trial in October on Tuesday, citing the ‘cloud of uncertainty’ over the social media company after the billionaire pulled out of a deal to buy it.

Twitter had called for an expedited trial in September, while Musk’s team called for waiting until early next year due to the complexity of the case.

“Delay threatens irreparable harm,” said Chancellor Kathaleen St. Jude McCormick, chief justice of the Delaware Court of Chancery, which handles many high-profile business disputes. “The longer the delay, the greater the risk.”

Regarding Musk’s team’s request for a later date, McCormick said he underestimated the Delaware court’s ability to “deal with complex litigation quickly.”

Twitter is trying to force the billionaire to fulfill his April promise to buy the social media giant for $44 billion – and the company wants that to happen quickly as it says the ongoing dispute is hurting its business.

Tesla and SpaceX CEO Elon Musk lost his fight to delay Twitter’s lawsuit against him as a Delaware judge set a trial for October on Tuesday

Delaware Chancellor Court Chancellor Kathaleen McCormick staged a lawsuit in October, citing the 'cloud of uncertainty' over the social media company after Musk pulled out of a deal to buy it

Delaware Chancellor Court Chancellor Kathaleen McCormick staged a lawsuit in October, citing the ‘cloud of uncertainty’ over the social media company after Musk pulled out of a deal to buy it

Musk, the world’s richest man, pledged to pay $54.20 a share for Twitter, but told the company in July he wanted to walk away from the deal.

“It’s an attempt at sabotage. He’s doing his best to bring down Twitter,’ said attorney William Savitt, representing Twitter before McCormick on Tuesday. The hearing took place virtually after McCormick said she tested positive for COVID-19.

Musk claimed the company failed to provide adequate information about the number of fake Twitter accounts, or “spam bots,” and breached its obligations under the deal by firing senior executives and by laying off a large number of employees.

Musk’s team expects more information about the bot numbers to come to light during the trial court’s discovery process, when both sides must turn over evidence.

Twitter says Musk’s reasons for backing off are just a cover for buyer’s remorse after he agreed to pay 38% above Twitter’s stock price shortly before the stock market hit. stumbles and shares of electric car maker Tesla, where most of Musk’s personal wealth resides, have lost more than $100 billion in value.

Parag Agrawal, CEO of Twitter, attends the annual Allen and Co. Sun Valley Media Conference in Sun Valley, Idaho earlier this month

Parag Agrawal, CEO of Twitter, attends the annual Allen and Co. Sun Valley Media Conference in Sun Valley, Idaho earlier this month

Twitter filed the lawsuit (above) in Delaware Chancery Court on Tuesday and will look forward to October for the scheduled start of the trial

Twitter filed the lawsuit (above) in Delaware Chancery Court on Tuesday and will look forward to October for the scheduled start of the trial

The lawsuit was a widely expected step after Musk announced his intention to withdraw from the April 25 merger deal (file photo)

The lawsuit was a widely expected step after Musk announced his intention to withdraw from the April 25 merger deal (file photo)

Savitt said the disputed merger deal and Musk’s tweets disparaging the company were hurting the company and questioned Musk’s request for a deferred trial, asking ‘if the real plan is to run out of time’ .

“He’s counting on the cancellation of the agreement he signed,” Savitt said.

But the idea that the CEO of Tesla is trying to damage Twitter is “absurd”. He has no stake in the company’s attorney,” Musk Andrew Rossman said, noting that he is Twitter’s second-largest shareholder with a “far larger stake” than the entire company’s board. society.

Savitt stressed the importance of an accelerated trial starting in September for Twitter to make important business decisions affecting everything from employee retention to supplier and customer relationships.

Rossman said more time was needed because it is “one of the largest private transactions in history” involving a “company that has a massive amount of data to analyze.” Billions of shares on their platform need to be analyzed.

Advertising

#Twitter #allowed #fasttrack #lawsuit #Elon #Musk #waiving #billion #takeover #judge

Leave a Comment

Your email address will not be published.