US judge sets October trial date for Twitter, Musk legal battle

by | Jul 19, 2022 | World

Twitter pushed for a fast-tracked trial, saying Elon Musk’s effort to terminate $44bn deal to buy the company hurt its value.A judge in the United States has set an October trial date for the looming legal battle between Twitter and Elon Musk, after the social media giant accused the Tesla CEO of smearing its reputation and lowering its value.
The hearing on Tuesday centred on Twitter’s push to set a trial date for as early as September in a case focused on Musk’s attempt to walk away from a $44bn agreement to purchase the company.
“Delay threatens irreparable harm,” said Chancellor Kathaleen McCormick of Delaware’s Court of Chancery, which handles many high-profile business disputes. “The longer the delay, the greater the risk.”
The San Francisco-based company is seeking to resolve months of uncertainty for its business as Musk tries to abandon the takeover, alleging Twitter misled him about the tally of fake accounts on the platform.
Musk announced that he was terminating the deal earlier this month, but Twitter has sought to hold him to it, saying he “knowingly, intentionally, willfully, and materially breached the agreement”.
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Twitter has asked McCormick of Delaware’s Court of Chancery to find Musk breached the agreement and to order him to complete the deal at the agreed price of $54.20 per share.
The company’s value dropped to $32.65 per share last week, erasing nearly $3bn in value. It was trading at about $39.16 on Tuesday morning, up about 2 percent and near the highest level since Musk said he was walking away.
Twitter wanted an expedited trial in September because it said Musk is smearing Twitter and undermining operations by refusing to approve business initiatives, such as an employee retention plan.
“It’s attempted sabotage. He’s doing his best to run Twitter down,” William Savitt, a lawyer for Twitter, said during Tuesday’s hearing, which was held virtually aft …

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