Elon Musk will countersue Twitter to void the agreement.
Elon Musk, the CEO of Tesla, is reportedly preparing to sue Twitter in an effort to terminate the $44 billion deal to purchase the social media behemoth.
The New York Post quoted sources familiar with the matter as saying that the countersuit was meant to persuade a Delaware Court of Chancery judge to give Musk’s legal team additional time to gather evidence about Twitter bots, which Musk said as the main justification for breaking the agreement.
Last Tuesday, Twitter filed a lawsuit against Musk in an effort to pressure him into completing his $44 billion acquisition of the social media giant. Twitter accused Musk of doing “outlandish” and “bad faith” activities that had harmed the platform irreparably and “wreaked havoc” on its stock price.
In April, Musk committed to buying Twitter for $54.20 per share. Twitter accepted those conditions after changing its mind about the acquisition after first opposing it. However, since the billionaire announced a week ago that he was walking away from his deal to purchase the firm, the two parties have been preparing for a judicial battle.
Musk’s attorneys filed a document with the Delaware Court of Chancery on Friday accusing Twitter of hiding information regarding phony accounts, creating delays, giving evasive answers, and erecting technological barriers. Additionally, the brief questioned Twitter’s desire for a hurried trial, asserting that it would take months to get material from Twitter and to depose multiple witnesses regarding phony accounts.
The lawsuit rehashed a number of other charges Musk has previously brought up, including the allegation that Twitter broke the acquisition agreement when it let go of two senior managers without first alerting Musk.
Musk has 20 days from the date Twitter sued him to submit his own counterclaims. Tuesday is the date of the first hearing. Musk is pushing for a later court date whereas Musk’s legal team wants a four-day trial to begin in September.
Twitter’s plea for a hurried trial is anticipated to be taken into consideration by Delaware Court of Chancery chancellor Kathaleen McCormick. If Musk’s legal team were to file a countersuit, McCormick would also hear it.