Delaware judge sets Musk-Twitter takeover dispute trial on October because Elon Musk lost a fight to delay Twitter’s lawsuit against him on Tuesday. Judges cited the cloud of uncertainty over the social media company after the billionaire-backed out of a deal to buy it.
The head judge of Delaware’s Chancery Court, Chancellor Kathaleen St. Jude McCormick, said delay threatens irreparable harm when handling many high-profile business disputes. The longer the delay is, the greater and may risk. Furthermore, the Judge sets the Musk-Twitter takeover dispute trial in October.
However, Twitter had asked for an expedited trial in September. The team of Musk called for waiting until early next year due to the case’s complexity. McCormick said the team of Musk underestimated the Delaware court’s ability to process complex litigation quickly.
Twitter is trying to force Musk to make good on his April promise to buy the social media giant for $44 billion. The social network company wants it to happen quickly because it says the ongoing dispute harms its business.
Musk, the world’s richest man and CEO of Tesla, pledged to pay $54.20 a share for Twitter, but now he wants to back out of the agreement.
Attorney William Savitt represents Twitter in Delaware’s Court of Chancery before the court’s Chancellor Kathaleen St. Jude McCormick. The trial held the hearing virtually after McCormick said she tested positive for COVID-19. Attorney William Savitt said that it’d attempted sabotage. He is doing his best to run Twitter down.
Musk has claimed that the company has failed to provide adequate information about the number of fakes, spam bots, and Twitter accounts. Furthermore, it has breached its obligations under the deal by firing top managers and laying off many employees.
Musk’s attorney Andrew Rossman said that, but the idea the Tesla CEO is trying to damage Twitter is incredible. He also noted that Musk is Twitter’s second-largest shareholder, with a far larger stake than the entire board. Musk has no interest in damaging the social network company.
Savitt emphasized the significance of an expedited trial starting in September for Twitter to make crucial business decisions affecting everything from worker retention to relationships with consumers and suppliers.
Rossman said more time is required because it is one of the largest take-private deals in history involving a company with a massive amount of data that must analyze. Billions of actions on their social network platform have to analyze.