Elon Musk Files Countersuit Against Twitter Over $44 Billion Deal

Elon Musk sues Twitter over $44 billion deal

Elon Musk vs Twitter: This comes after the Delaware Court ordered a five-day trial on October 17.

Wilmington:

Elon Musk went against Twitter Inc on Friday, escalating his legal battle with the social media company over its bid to walk away from the $44 billion purchase, even though the lawsuit was filed confidentially.

While the 164-page document was not publicly available, an edited version could soon be made public under court rules.

Musk’s lawsuit was filed hours after Chancellor Kathaleen McCormick of the Delaware Court of Chancery ordered a five-day lawsuit from Oct. 17 to determine whether Musk can walk away from the deal.

Twitter did not immediately respond to a request for comment.

Musk, the world’s richest person and CEO of Tesla Inc, said he was opting out of the acquisition and blamed Twitter Inc for violating the deal by misrepresenting the number of fake accounts on his platform.

Twitter sued days later, calling the fake account a distraction and saying Musk was bound by the merger contract to close the deal for $54.20 a share. Shares of the company ended Friday at $41.61, the highest close since Musk exited the deal.

McCormick expedited the case in court last week, saying she wanted to limit the potential damage to Twitter caused by the uncertainty of the deal.

Twitter blames the court for declining revenue and causing chaos within the company.

The two sides had agreed in principle to a trial on October 17, but disagreed on the limits of discovery or access to internal documents and other evidence.

Musk accused Twitter this week of dragging his feet in response to his discovery requests, and Twitter accused him of seeking massive amounts of data irrelevant to the main issue in the case: whether Musk had violated the deal contract.

The chief justice in her command seemed to anticipate discovery disputes to come.

“This order does not resolve specific discovery disputes, including the accuracy of large dataset requests,” McCormick said.

Musk is also facing a week-long trial in Wilmington, Delaware, beginning October 24. A Tesla shareholder wants as corporate waste and unjust enrichment to void the record-breaking $56 billion salary package of the electric vehicle manufacturer’s CEO.

(Except for the headline, this story has not been edited by NDTV staff and has been published from a syndicated feed.)

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