What’s going on?
On Friday, Elon Musk’s lawyers responded on Twitter to the lawsuit.
Why it is so important
Twitter sued Musk this week, after Musk said that he would not sign a deal to purchase the social media company for $44billion. This raises questions about the future of Twitter.
On July 19, a hearing will be held to discuss Twitter’s September request for a trial that would last four days. Musk’s lawyers would prefer a trial in February, or later.
Bloomberg will be live Friday reportedMusk’s lawyers opposed Twitter’s request for September’s four-day trial and demanded that the trial be held on February 23rd or later. Musk’s lawyers cited a 14-page Delaware Chancery Court filing and stated that the trial would be held next year, which is still “extremely rapid for a case this large.”
The lawsuit is Musk’s first legal response to Twitter’s lawsuit. It was filed on Tuesday after Musk stated that he had no plans to buy Twitter for $44billion. Musk stated that he wanted to terminate the deal as the social network didn’t provide enough information to confirm that less than 5% of Twitter’s 229 million daily user are spam accounts or fakes. Musk asserts that he thinks the number may be higher and says he needs the information in order to understand Twitter’s ads business. Twitter refuted Musk’s claims and stated in the lawsuit that his requests for information were made to “try to kill the deal.” Musk’s shares in his company are the main source of his wealth. TeslaTwitter claimed in the lawsuit that the stock price of electric-car maker Tesla has fallen and that Twitter has become more expensive to buy.
In a Motion filed Tuesday, Twitter asked the Delaware court to speed up the process in order to protect its shareholders and the company from potential harm caused by Musk’s efforts to “bully his way” out of the deal. Musk’s lawyers are trying to stop that.
“Twitter’s sudden request to warp speed following two months of footdragging and obfuscation, is its latest tactic for shrouding the truth about Spam accounts long enough to railroad defendants to closing,” the filing stated.
Twitter also claimed that Musk violated a section of the merger agreement which prohibits him from making disparaging comments on Twitter. They pointed out that Musk replied to Parag Agrawal in May with a poop emoticon. Musk’s lawyers stated in the filing that Twitter ignores the fact that Musk is the second largest shareholder, with a much greater economic stake than the entire Twitter board. Musk owns a 9.9% stake in Twitter.
Kathaleen St. J. McCormick, Delaware Chancery Court Chief Judge, has scheduled a hearing on July 19, in response to Twitter’s request for speeding up the trial. Bloomberg reported.
Twitter did not comment on the Musk lawyers’ filing.