Elon Musk, the CEO of Tesla, texted Larry Ellison, the co-founder of Oracle Corporation, only hours before he declared that he was suspending his pursuit of the social media business, according to a recent court document from Twitter.
According to Twitter’s court document, Musk and Ellison spoke by text message from May 12 to 12:20 a.m. on May 13. This was just a few hours before Musk tweeted that he was postponing his purchase plans because of the platform’s phony and spam accounts.
The legal department at Twitter has taken issue with Musk’s stance, claiming that the Tesla CEO has not really disclosed the pertinent text communications between Musk and Ellison. This was true even though, according to Insider, Twitter subpoenaed Musk’s correspondence about his failed effort to acquire the social media site.
Not merely Musk’s communications with Ellison seemed to be causing Twitter’s legal department problems. A snapshot of a chat between Musk and entrepreneur Marc Andreessen on the messaging app Signal, which has a function that automatically deletes communications after a certain period of time, was used by Twitter’s legal team to charge Musk with “destroying evidence.”
According to Twitter’s legal team, Musk erased these chats because he knew they would be used against him in court and would betray his defenses and counterclaims.
Andreessen and Ellison have both supported Musk’s bid to purchase Twitter. While Ellison was one of the 19 investors that contributed a staggering $7.14 billion for the possible purchase, Andreessen’s venture capital company, Andreessen Horowitz, supported Musk with $400 million.
Musk said that he abandoned his acquisition of Twitter because the social media business exaggerated the number of phony and spam accounts that were present on the network. Twitter, on the other side, has claimed that Musk should be pressured to finish the $44 billion ($54.20 per share) purchase of the business.
A new date has been set for Elon Musk Twitter deposition: October 6–7
The deposition of Elon Musk by Twitter Inc attorneys has been moved from this week to Oct. 6-7, only 10 days before a trial over his attempt to back out of the $44 billion merger. The delay may work in the social network company’s favor.
The world’s wealthiest person’s deposition was initially set for this week, but on Monday, sources close to the case indicated that given how quickly the action is moving, the time of the interview is always susceptible to change.
In order to be ready for the five-day trial beginning on October 17 in Wilmington, Delaware, the two sides are taking dozens of depositions and examining thousands of documents and conversations.
The timing of depositions, according to Boston College Law School professor Brian Quinn, matters, and Twitter could be better off holding off on interviewing Musk until after they have gotten his conversations.
Quinn advised delaying your best witnesses until the very end to allow for as much discovery as feasible.
Twitter will seek Chancellor Kathaleen McCormick to penalize Tesla Inc. CEO Elon Musk later on Tuesday for what Twitter claims is his legal team’s disobedience to court orders to provide over communications concerning Musk’s decision to terminate the agreement. Musk is the top executive of Tesla Inc.
Under seal, Musk responded to Twitter’s request. In the past, Musk’s attorneys have claimed that the social media giant was accusing him of hiding documents and communications in order to draw attention away from the firm’s own discovery abuses.
The case is anticipated to focus heavily on Musk’s deposition. He has been confrontational when testifying under oath in the past. It’s anticipated that Musk abandoned the agreement because of deteriorating financial markets, according to Twitter’s legal team.
Twitter is asking McCormick to give Musk the go-ahead to finalize the transaction at the agreed-upon share price of $54.20. The billionaire is seeking a decision that Twitter broke the terms of the agreement by concealing crucial information about users, enabling Musk to go without facing any consequences.