Bright Times News: Elon Musk rejected Twitter Inc. on Friday and stepped up his legal fight against the social media corporation to force it to renege on the $44 billion acquisition, despite the complaint being filed in secret. Although the 164-page document was private, court regulations might soon allow the release of a revised version.
Musk’s lawsuit was submitted hours after Kathleen McCormick, chancellor of the Delaware Court of Chancery, set a five-day trial commencing on October 17 to decide whether Musk can back out of the agreement.
An inquiry for comment was not immediately answered by Twitter.
Also on Friday, a Twitter shareholder filed a lawsuit against Musk, asking the court to require the billionaire to finalize a list of the transaction and compensate him for the harm he caused as a result of breaching his responsibility to Twitter shareholders.
Because of his 9.6 percent ownership stake in the business and the fact that the acquisition deal grants him veto power over many corporate decisions, Musk owes a fiduciary duty to Twitter’s shareholders, claims the lawsuit, which is asking for class-action status. Luigi Crispo, which has 5,500 shares on Twitter, filed the complaint at the Court of Chancery.
The transaction was scrapped on July 8, according to Musk, the richest man in the world and CEO of Tesla Inc. He accused Twitter Inc. of breaking the deal by exaggerating the number of false accounts on its platform.
Twitter sued a few days later, claiming the fake account was a distraction and saying Musk was obligated to close the deal at $54.20 per share from the merger contract. Shares of the company ended Friday at $41.61, the highest close since Musk left the deal.
Due to the deal’s uncertainties, McCormick accelerated the hearing last week, saying she wanted to minimize any potential harm to Twitter. Twitter has attributed Twitter’s declining revenue and internal commotion to the legal battle. Twitter has blamed the legal dispute for its dwindling income and internal strife.
The two sides had initially agreed to a trial date of October 17, but they were at odds over the scope of the search, access to internal records, and other pieces of evidence.
This week, Musk accused Twitter of being slow to respond to his search requests, and Twitter countered that he was gathering a tonne of information that was unrelated huge the fundamental question at hand: whether Musk had broken the terms of the transaction. was abused.