In October, Twitter and Elon Musk will stand trial over whether the billionaire should end his $44 billion acquisition social network, a Delaware judge ruled on Tuesday.
The decision was the first in a lawsuit Twitter filed this month to force Mr. Musk, the richest man in the world, to make a blockbuster deal. mr. Musk agreed to buy Twitter in April, but specified this month he wanted to stop purchase. Twitter sought to expedite the case by requesting a trial in September. In response, Musk demanded a trial in February.
At a nearly two-hour hearing on Tuesday, Kathleen St. J. McCormick, the judge hearing the case in the Delaware Court of Chancery, has ruled that the trial will take place in October.
“The longer the merger deal remains in limbo, the more the cloud of uncertainty hangs over the company,” she said.
The decision was a win for Twitter, which said the extension would give Mr W Musk more time to pester the company and find a way out of the deal. RS. McCormick ruled that the trial would last five days, with the exact date to be determined based on court and lawyers’ schedules for the case.
“We are pleased that the court has agreed to expedite this trial,” a Twitter spokesperson said. A spokesman for Mr. Musk’s legal team did not immediately respond to requests for comment.
When Mr. Musk agreed to buy Twitter, he said he would take it private and that the company had great potential. But after a few weeks, he began to claim that Twitter interfered with his attempts to figure out how many accounts on his platform were fake, and said the company was not disclosing relevant information to him.
Twitter reported that Mr. Musk was looking to exit buying when the stock market crashed. The company said it worked with Mr. Mask to give him information about fake accounts.
At Tuesday’s hearing, Twitter pushed for the lawsuit to be dealt with as soon as possible. Bill Savitt, a lawyer for Twitter, said the “constant uncertainty” about the deal is “harming Twitter every hour of every day” and asked for a trial in September. The delay will allow Mr. Musk not enough time to finance the deal. Savit said.
Lawyers for Mr. Musk said the billionaire needed more time to analyze massive amounts of data to determine whether Twitter accurately counted the number of fake accounts on its platform.
Twitter has tried to “hide” data about its bots, said Andy Rossman, Mr. Trump’s lawyer. Musk, “for as long as it takes to close this deal.”