Judge sets October trial to decide Musk’s $44-bn deal for Twitter
Twitter Inc’s lawsuit to hold Elon Musk to his $44 billion takeover will go to trial in October after a Delaware judge said on Tuesday the social media company deserved a quick resolution of the deal’s uncertainty.
The ruling is a blow to Musk who pushed for a trial in February which his lawyer told the court would allow for an extensive investigation into the true number of spam accounts on the platform. Twitter had requested a September trial.
Chancellor Kathaleen McCormick of the Court of Chancery in Delaware said the parties were capable of handling an expedited trial.
“The reality is delay threatens irreparable harm to the sellers,” she said, referring to Twitter.
She asked the parties to work out the schedule for the trial, which she set at five days.
Twitter stock rose throughout Tuesday morning and was up 3.6% at $39.81 in early afternoon.
Twitter wants McCormick to find Musk breached the merger agreement and to order him to complete the merger at the agreed price of $54.20 per share. It said it needed the earliest possible trial date in case Musk was ordered to close and additional litigation was then needed to address financing.
Twitter’s lawyer William Savitt argued during the hearing that the number of bot and spam accounts on its service had no bearing on its deal with Musk. He said Musk seized on the issue because he was seeking to conjure an exit ramp for a deal that doesn’t have one.
Musk had argued an expedited trial would prevent the truth about spam from coming to light.
A lawyer for Musk at Tuesday’s hearing accused Twitter of dragging its feet in responding to Musk’s requests for information regarding the methods for calculating the number of spam accounts.
“When Mr. Musk started asking questions, the answers he got were alarming,” said Andrew Rossman, Musk’s lawyer. He said it will take months to analyze massive amounts of data to resolve Musk’s questions about Twitter’s spam accounts.
Rossman also pushed back on the notion that Musk was trying to harm Twitter, pointing out the billionaire held a larger stake than the combined holdings of the directors of Twitter.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Comments are closed.