Twitter wins first battle against Musk — Analysis
Tesla CEO lost his bid to delay the social media giant’s lawsuit until next year
Delaware’s judge has established a date in October for Elon Musk and Twitter to face off in court. He stated that there would be no further delays. “threatens irreparable harm”To the billionaire who wants to make a takeover worth $44bn.
Musk’s legal team sought to postpone the hearings until February next year, while Twitter requested a trial as early as September.
The social media company’s representative accused the billionaire of an “attempted sabotage” “doing his best to run Twitter down.” Twitter lawyer William Savitt argued that“The uncertainty that Musk’s termination purportedly creates for Twitter is a constant threat to its existence, and it causes Twitter harm every day, every minute of every day.”
“The longer the delay, the greater the risk,” the head judge of Delaware’s Court of Chancery, Chancellor Kathaleen St. Jude McCormick, agreed in his ruling on Tuesday. The judge allowed the parties to reach an agreement on the precise date, provided they do not settle by that time.
Twitter brought a lawsuit against Elon Musk in an attempt to get him to fulfill his promise to purchase the company for $44billion or $54.20 per shares. The world’s richest man called off the deal, accusing the company of “material breach of multiple provisions”Concerning the problem of bot or fake accounts. Musk’s team did not agree with Twitter’s estimate of the number of these types of accounts, which put it at just 5% of users, saying the company made “misleading representations.”
Social media giant, however, accused billionaire de negotiating in bad faith. “Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he… is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” the lawsuit states.
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