Tech

The trial between Twitter and Musk over the $44 billion deal is set to begin in October

Delaware Court of Chancery Chancellor Kathleen McCormick on Tuesday ruled in favor of Twitter on an expedited trial to force Elon Musk to buy the company for $44 billion. The five-day trial will take place in October.

During the hearing, Twitter’s attorney, Bill Savitt of Wachtell, Lipton, Rosen & Katz, argued that Twitter’s request for a September trial was well within the timeline for similar cases in the past. He added that a quick testing schedule is needed to stop the lingering damage to Twitter from the uncertainty of closing the deal and the perceived snub by Musk.

Savit also argued that Musk’s attempts to delay the lawsuit could be a ploy to “start the clock,” leaving little time for appeals before the debt obligations he took on to finance the deal expire.

Musk’s lawyer, Andrew Rossman of Quinn Emanuel, argued that the accelerated deadline was too tight for his team to sift through the massive Twitter data Musk wants to examine to check the percentage of spam accounts on the platform.

Rossman accused Twitter of “continuing to guard this number as a secret” and failing to provide the information Musk had previously requested from the company.

But Savit argued that in this case it is not necessary to determine the share of spam accounts, because “nothing in the merger agreement addresses this issue.”

In July, Musk sent a letter through his lawyers to Twitter’s chief legal officer, Vijay Gade, explaining why the billionaire believes his acquisition should no longer proceed. Lawyers argue that Twitter is underreporting the number of spammy and fraudulent accounts on its messaging service and is not sending Musk information that it is believed could help the executive branch better calculate those statistics.

Twitter later sued Musk and some of his associates in late July, alleging that the billionaire “is refusing to fulfill his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests.”

At the time, Twitter required a 4-day trial that would begin in September.

Musk and his lawyers, however, later asked the court to deny Twitter’s request for a speedy trial. Instead, the billionaire and his lawyers want the trial to take place next year, arguing that Twitter initiated a “sudden warp speed request after two months of dragging and obfuscation,” according to court filings.

The trial between Twitter and Musk over the $44 billion deal is set to begin in October

Source link The trial between Twitter and Musk over the $44 billion deal is set to begin in October

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