After a judge in the Delaware Chancery Court determined that a trial would commence on October 17, the continuing legal dispute between Twitter and Elon Musk is about to enter an exciting new chapter that will take place later this year. This month, Twitter used the law to force Elon Musk to carry out his $44 billion plan to acquire the social media platform.
This occurred a few days after Musk revealed his intention to back out of the widely reported acquisition agreement, Shortly after submitting a bid for Twitter, Musk voiced his concerns about the platform’s actual level of bot activity. Twitter’s issues with bogus accounts and spam are significantly greater than the company has publicly acknowledged, according to Tesla CEO Elon Musk.
One time, Musk allegedly conducted a random test and discovered that 1/5 of all Twitter users were spam or bogus accounts. Musk said he had taken the decision to cancel the transaction in early July and gave all of these justifications, which he described as “misleading claims” made by Twitter officials.
By requesting that Musk execute the acquisition as planned, Twitter formally contested this ruling. Twitter also cited the impending uncertainty around Musk’s takeover offer as one of the causes of its revenue deficit in its most recent earnings report.
In September, the Delaware Chancery Court’s top judge, the Honorable Kathaleen St. Jude McCormick, made a decision about Twitter’s request for a four-day trial. The trial will take place on October 17, 2022, according to the judge’s judgment. Musk’s attorneys, on the other hand, wanted the trial postponed until mid-February 2023.
Given that their timeframe has only been stretched by one month, Twitter should be content with today’s decision even if they were unable to persuade the court to set the trial for September. The attorneys for Twitter had claimed that the trial’s ongoing postponement would only increase the impending ambiguity about the deal’s future and have an impact on Twitter’s future income.
The majority of Judge Mc Cormick’s ruling seems to support Twitter’s claim that the more the deal is pending, the higher the risk of the firm suffering irreparable harm. The judge also observed that Musk’s attorneys seemed to have misjudged the court’s capacity to resolve this complex legal dispute fast.
Musk’s defense attorney, Andrew Rossman, said that his client insisted on a February trial date so that there would be time to independently verify Twitter’s assertion that fewer than 5 percent of its users are fraudulent or spam accounts. Given the prospect that the Billionaire tycoon may be compelled to acquire the business, he also said that Elon had more at risk than Twitter.