10.8 C
New York

Elon Musk flips bird at Twitter, files countersuit in legal battle

Published:

Elon Musk filed a countersuit against Twitter on Friday, escalating his legal battle with the social media company over his abandoned $44 billion agreement to take over the location.

The 164-page suit was filed under seal just before the judge-imposed 5 p.m. deadline, so its contents weren’t immediately visible to the general public. Under court rules, a partially redacted version could also be available next week. 

The Post first reported Musk’s plans for the counter-suit, which was filed in Delaware’s Court of Chancery.

“I actually have reviewed the counterclaims and declare that the matter contained therein insofar because it concerns my acts and deeds is true, and insofar because it pertains to the acts and deeds of some other person, I feel it to be true,” said an accompanying filing signed by Musk.

Twitter shares ticked down 0.3% on the news.

Twitter spokesman Brian Poliakoff declined to comment on the countersuit.

J.B. Heaton, an investment researcher and former corporate attorney, told The Post that Musk’s countersuit was likely filed under seal since it includes information that Twitter shared with Musk under a non-disclosure agreement or other restrictions. 

It’s almost definitely because they’re including facts that they’ve gained under an expectation of confidentiality from Twitter,” Heaton said. 

Twitter desires to force Elon Musk to undergo together with his deal to purchase the location for $44 billion. REUTERS

Delaware Court of Chancery Judge Kathaleen McCormick will likely make the 2 sides agree on a partially redacted version that could possibly be released to the general public inside per week, in response to Heaton.  

The Wall Street Journal reported that Musk’s countersuit features a reference to a famous Warren Buffett quote: “Only when the tide goes out do you discover who’s been swimming naked.” 

The quote is an apparent nod to Musk’s accusation that Twitter has hidden a fake account problem, in response to the Journal.  

Elon Musk TwitterElon Musk says he has concerns about fake accounts on Twitter. Bloomberg via Getty Images

The news comes as Musk and Twitter prepare for an upcoming trial within the social media site’s suit against the mogul for backing out of his $44 billion takeover deal. 

Twitter desires to force Musk to undergo together with his original agreement to buy the location at $54.20 per share, while Musk desires to walk away from the deal on account of alleged concerns about fake accounts. 

In a hearing last week, McCormick granted Twitter’s request for an expedited trial and on Friday, she finalized plans for a five-day trial starting on Oct. 17.

Musk’s lawyers had wanted the trial to start out no sooner than February 2023, arguing that his team needs more time to research fake accounts on the location.  

“The longer the merger transaction stays in limbo, the larger the cloud of uncertainty solid over the corporate,” McCormick said when granting Twitter’s expedited trial request. 

Twitter is in search of to force Musk to undergo together with his agreement to purchase the corporate for $54.20 per share, but the corporate’s shares were trading at $41.50 in after-market trading on Friday, indicating that investors are skeptical the corporate will prevail.

Many legal analysts have said that Twitter has a robust case against the world’s richest man, but Delaware courts might not be inclined to force Musk to take over a site he doesn’t want. As a substitute, the corporate may conform to a lower takeover price or reach a settlement with Musk. 

Musk first said he was walking away from the deal on July 8, accusing Twitter of breaching the merger agreement by misleading him in regards to the number of pretend accounts on the location. 

Twitter sued days later, calling the fake account claims a distraction and saying Musk was sure by the merger contract to shut the deal on the agreed-upon price.

With Post wires

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles

spot_img

Recent articles

spot_img