Twitter files a lawsuit against the reproductive machine billionaire Elon Musk in Delaware Chancery Court after Musk backed off from the promised deal. He made an offer of $44 billion to acquire the social media, however, after months of going back and forth he finally let it go.
This doesn’t sit well with the social media Twitter. They request that now after the whole charade Musk needs to stay true to his word and buy the company. From Twitter they are in a hurry and want to wrap things up as soon as possible. They requested for the trial to start in September. However, Musk is a busy man. He can attend to the lawsuit earliest in February.
Elon Musk Lost The First Round In The Legal Battle With Twitter – The Trial Will Start In October!
Chancellor Kathaleen McCormick made the first call and gave the first victory to Twitter. On July 19th, she rules for an earlier hearing. Due to this, the trial will take place over five extremely busy days for both parties in October. According to Twitter, and obviously, according to the court, any further delay of the lawsuit is harming Twitter’s business.
However, there is one additional point here that is extremely important for both Elon Musk and Twitter. There is a clause in the initial agreement that says that the deal is to be dismissed free of charge if an agreement over it and closing is not done until the 24th of October. So Musk’s intention likely is to postpone this as much as possible for this date to be exceeded. But not this time Elon. They’ve read your intentions.
“Defendants’ ability to terminate the agreement before the presumptive drop-dead date of Oct. 24, 2022, is an extreme limit.” – Twitter states in the lawsuit. “There is no right for defendants to terminate unless there is a breach sufficiently significant to cause the failure of a closing condition. Which, after due notice, is either incapable of being cured or is not cured within 30 days after such notice. Twitter has suffered and will continue to suffer irreparable harm as a result of defendants’ breaches.”
Musk has found himself on the exact opposite side here. He and his team believe that an earlier trial will affect him negatively. Meaning he will have less time to do his research and hence a lower chance of presenting a better statement.
“Plaintiff’s proposed schedule would severely prejudice defendants by depriving them of a meaningful opportunity to take discovery, conduct expert analysis, and present their case.” – Musk’s lawyers state in their response to the decision. “The only relevant date is the outside date for the debt financing, April 25, 2023. Accordingly, defendants respectfully request a trial on or after February 13, 2023, an extremely rapid schedule for a case of this enormous magnitude that provides the court time for reasoned adjudication before the true outside date.”
Elon Musk stays firm on his position that he was a subject of delusion by Twitter. He is subject to lies and misleading to believe the platform has less than 5% spam and fake accounts. And that is the main reason for his backing off. According to him, the number is as high as 20%.
Wonder whether an amendment to the agreed price will change his mind…
