This month, Musk abandoned his aspirations to buy Twitter. Twitter is currently suing him in court.
Elon Musk, who just reneged on his aspirations to acquire Twitter, has been given a trial date of October.
Trial Date in October
Elon Musk might not be so willing to quit Twitter.
On July 8, Musk made the decision to scrap his proposed purchase of Twitter. In response, Twitter said that it will keep pursuing the agreement by suing Musk.
The court action that may compel the merger to move through is now scheduled for October. The Delaware Court of Chancery’s main judge, Chancellor Kathaleen McCormick, decided in favor of Twitter today and awarded the company a five-day accelerated trial.
A swift trial is required, according to Twitter’s attorney Bill Savitt of Wachtell, Lipton, Rosen & Katz, in order to avoid collateral harm. Musk’s “continuous ambiguity” “inflicts harm on Twitter, every hour of every day,” the author concluded.
A postponed trial could also result in difficulties. While Musk’s loan funding will expire on April 25, 2023, the two businesses already set a “drop dead” date that would permit any side to walk away if no transaction is concluded by Oct. 24.
Musk Has Changed His Mind About Buying
For his part, Musk tried in vain to get a trial date in February. A sooner deadline, according to his legal team, would leave insufficient time for a thorough study of the pertinent data.
The percentage of false or spammy Twitter accounts will be calculated by Musk and his attorneys.
Since Musk reneged on the agreement in May, this has been a concern. Before moving forward with the acquisition at the time, Musk wanted evidence that fewer than 5% of Twitter’s accounts were false.
When Twitter pledged to supply a “firehose” of data in June and Musk started to talk about his ambitions with staff, it seemed as though the deal had already been completed. Musk, however, declared that he would terminate the agreement because he believed the evidence to be insufficient.
According to rumors dated July 18, Musk’s legal team also intends to countersue over the present litigation.
Twitter Probably Has the Advantage
Given Musk’s dubious actions and weak legal foundation, the majority of criticism on the case predicts Twitter’s success.
Indeed, according to Twitter’s own legal counsel, “nothing in the merger agreement hinges on [the] topic” of spam bots. Savitt claims that Musk’s buyer’s remorse is actually hiding behind his worries about spam bots.
Musk must pay at least $1 billion in fines or move forward with the purchase as planned if Twitter wins the case at trial. Musk is anticipated to integrate cryptocurrency payments into Twitter and seek to eradicate cryptocurrency frauds if the transaction goes through. Binance, a leading cryptocurrency exchange, also supports the agreement.