Twitter and Musk Trial in $44 Billion Deal Begins in October

Delaware Court of Chancery Chancellor Kathleen McCormick rules Twitterfavor on Tuesday for an expedited trial forces $44 billion acquisition of Elon Musk companies. The five-day trial will take place in October.

During the hearing, Twitter’s lawyer Bill Savitt of Wachtell, Lipton, Rosen & Katz argued that Twitter’s request for a trial in September was in line with the timing of similar cases in the past. He added that a speedy litigation schedule is needed to stop the ongoing harm that Twitter is experiencing due to the uncertainty of closing the deal and the perceived humiliation by Musk.

Savitt also spoke about the efforts of Musk, who is also the CEO Tesla and SpaceX, the delay in litigation could be a ploy to “buy time,” leaving little time for appeals before the debt it took on to fund the deal expires.

Musk’s lawyer, Andrew Rossman or Quinn Emanuel, argued that the accelerated schedule was too invasive for his team to look at the huge array of Twitter data that Musk wants to check to check the percentage of spam accounts on the platform.

Rossman said Twitter wants to “continue to keep secret” the number and did not provide the information Musk requested from the company earlier.

But Savitt said that in this case it is not necessary to determine the percentage of spam accounts, since “nothing in the merger agreement addresses this issue.”

In July, Musk, through his lawyers, sent letter to Twitter General Counsel Vijay Gadda, explaining why the billionaire believes his acquisition should no longer go ahead. Lawyers argued that Twitter under-reported the number of spam and scam accounts on its messaging service and did not send Musk information that could purportedly help the executive better calculate those statistics.

Twitter later sued Musk and some of his associates in mid-July over accusations that the billionaire “refuses to fulfill his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests.”

At the time, Twitter was pushing for a four-day trial starting in September.

However, Musk and his lawyers later asked the court denied Twitter’s request for a speedy trial. Instead, the billionaire and his lawyers want a lawsuit to take place next year, alleging that Twitter initiated a “sudden request for warp speed after two months of delay and obfuscation,” according to a court filing.

Correction: Twitter later sued Musk and some of his associates in mid-July. In an earlier version, the time was incorrect.