Musk-twitter takeover dispute: Judge orders October trial in Elon Musk-Twitter takeover case

Elon Musk lost the battle with delay Twitterthe lawsuit against him as a Delaware judge on Tuesday set a trial in October, citing a “cloud of uncertainty” over the social media company after the billionaire pulled out of a deal to buy it.

“Delay threatens irreparable damage,” said Chancellor Kathleen St. Louis. Jude McCormick, Chief Judge of the Delaware Court of Chancery, who handles many high-profile business disputes. “The longer the delay, the greater the risk.”

Twitter requested a fast track trial in September, while Musk’s team called for a wait until early next year due to the complexity of the case. McCormick said Musk’s team underestimated delaware courtthe ability to “handle complex litigation quickly”.

Twitter is trying to force the billionaire to honor its April pledge to buy the social media giant for $44 billion — and the company wants it to happen quickly because it says the ongoing dispute is hurting its business.

Musk, the world’s richest man, promised to pay $54.20 per share of Twitter but now wants to back out of the deal.

“This is an attempt at sabotage. He is doing everything he can to take Twitter out of action,” said Attorney William Savitt, who is representing Twitter in the Delaware Court of Chancery before Chancellor Catalyn St. Johns. Jude McCormick. The hearing came almost after McCormick said she tested positive for COVID-19.

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Musk said the company failed to provide adequate information about the number of fake or “spam bots” on Twitter and that it violated its obligations under the deal by firing top executives and laying off a significant number of employees.

Savitt said the contested merger agreement and Musk’s tweets humiliating the company are hurting the business, and questioned Musk’s request for a trial delay, asking “if the plan is really to go out of business.”

“He’s betting that he will get out of the deal he signed,” Savitt said.

But the idea that the Tesla CEO is trying to damage Twitter is “absurd.” He has no interest in hurting the company,” Musk’s lawyer Andrew Rossman said, noting that he is the second largest shareholder of Twitter with a much larger share than the entire board of directors.

Savitt stressed the importance of an accelerated trial starting in September so that Twitter can make critical business decisions that affect everything from employee retention to supplier and customer relationships.

Rossman said more time is needed because it is “one of the largest private transactions in history” involving a company with a huge amount of data to analyze. Billions of actions on their platform have to be analyzed.”

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