Judge sets October trial for Musk-Twitter takeover dispute

Twitter is trying to force the billionaire to make good on his April promise to buy the social media giant for USD 44 billion - and the company wants it to happen quickly because it says the ongoing dispute is harming its business.

PTIUpdated: Tuesday, July 19, 2022, 11:08 PM IST
article-image
Judge sets October trial for Musk-Twitter takeover dispute | AFP

An epic legal fight between Elon Musk and Twitter began in earnest in a Delaware court on Tuesday as lawyers for both sides fought over how soon the trial should begin.

Twitter is trying to force the billionaire to make good on his April promise to buy the social media giant for USD 44 billion - and the company wants it to happen quickly because it says the ongoing dispute is harming its business.

Musk, the world's richest man, pledged to pay USD 54.20 a share for Twitter, but now wants to back out of the agreement.

"It's attempted sabotage. He's doing his best to run Twitter down," said attorney William Savitt, representing Twitter in Delaware's Court of Chancery before the court's Chancellor Kathaleen St. Jude McCormick.

The hearing was held virtually after McCormick said she tested positive for COVID-19.

Musk has claimed the company has failed to provide adequate information about the number of fake, or "spam bot", Twitter accounts, and that it has breached its obligations under the deal by firing top managers and laying off a significant number of employees.

But the idea the Tesla CEO is trying to damage Twitter is "preposterous. He has no interest in damaging the company", said Musk's attorney Andrew Rossman, noting he is Twitter's second-largest shareholder with a far larger stake than the entire board.

Savitt emphasised the importance of an expedited trial starting in September for Twitter to be able to make important business decisions affecting everything from employee retention to relationships with suppliers and customers.

Rossman said more time is needed because it is "one of the largest take-private deals in history" involving a "company that has a massive amount of data that has to be analysed. Billions of actions on their platform have to be analysed".

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Maharashtra: Five of family killed as container hits their car near Pune

Maharashtra: Five of family killed as container hits their car near Pune

Mumbai updates: 3 signal failures reported at CSMT; local trains on Central, Harbour line delayed

Mumbai updates: 3 signal failures reported at CSMT; local trains on Central, Harbour line delayed

Row over participation of child dressed as V D Savarkar in Kerala school's I-Day event

Row over participation of child dressed as V D Savarkar in Kerala school's I-Day event

Mumbai: Celebs missing, no big cash prize; Dahi Handi celebration with less pomp this year

Mumbai: Celebs missing, no big cash prize; Dahi Handi celebration with less pomp this year

Four wheels of express come off track after it hits goods train in Maharashtra's Gondia; no serious...

Four wheels of express come off track after it hits goods train in Maharashtra's Gondia; no serious...
epaper
Do you wish to receive daily Epaper on your WhatsApp for FREE?
NO
Yes