Twitter accused Elon Musk of attempting to “slow walk” the company’s lawsuit to support the $44 billion buyout and demanded a September trial to guarantee transaction funding stays in place on Monday, according to a court document, reported news agency Reuters. Elon Musk, the CEO of Tesla, canceled the contentious takeover of the social media site.
The business said that shares fell as a result of the deal’s prior and present uncertainties due to the trial. The business said that “millions of Twitter shares trade every day under a cloud of Musk-created mistrust.” There was a statement that said, “No public firm of this size and scope has ever had to face these risks.” Twitter claims that when Elon Musk agreed to pay $44 billion to purchase the firm, he was well aware of spam and robot accounts. Twitter is pleading with the court to start a trial right now.
Elon Musk vs. Twitter: Today’s first online hearing
The chancellor of the Delaware Court of Chancery has tested positive for Covid-19, thus a hearing in the plea Twitter entered for a September trial will take place online on Tuesday. According to a letter sent on Monday, Kathaleen McCormick, the chancellor of Delaware’s Court of Chancery who tested positive for Covid-19, was notified that the hearing in Delaware will take place through Zoom rather than in person because she must “isolate this week in accordance to CDC recommendations.”
In Wilmington, McCormick has scheduled a 90-minute hearing.
The loan funding, which ends in April, might still need months of extra litigation, according to the business, even if Musk is compelled to finish the purchase. Twitter has asked the court to deny Musk’s request to set the trial’s date for February, citing this justification.
On Tuesday, the Delaware Court of Chancery judge will hear from the two parties. Twitter has filed a lawsuit against Musk, requesting that a Delaware court compel him to consummate the merger at the agreed-upon share price of $54.20. However, according to a New York Post article, Musk’s attorneys want to countersue Twitter and obtain additional data about spam accounts.
As of last week, the price of a share of Twitter had dropped from more than $50 when the acquisition was first announced in April to around $33. The price of Twitter’s shares rose 1.8% on Monday to finish at $38.41. The $44 billion Twitter purchase made headlines in the internet industry, but it was eventually scrapped because Elon Musk said Twitter was unable to provide clarification on the precise number of spam accounts.
Source: ABP Live, Reuters, Bloomberg