The ongoing drama between billionaire Elon Musk and Twitter is far from over.
Although Tesla’s CEO recently announced that he is willing to buy the company after a back-and-forth legal battle that has raged for months, Twitter has not agreed to drop its lawsuit against him, hoping a judge will force him to follow through on his verbal plea. .
The 51-year-old millionaire then asked for a postponement of the trial to arrange their affairs. Although Twitter objected to the delay, Delaware Court of Chancery Judge Kathaleen McCormick ruled that the trial would indeed be postponed until the end of the month.
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Elon Musk Granted Hearing Stay As Twitter Lawsuit Emerges
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Although proceedings were scheduled to begin in Delaware Chancery Court on Monday, October 17, Judge McCormick allowed the trial to be delayed until the end of the month (via Deadline). He gave Musk until Friday, October 28, at 5 pm ET to close the deal with Twitter. If the two sides cannot reach an agreement by then, another trial date will be scheduled for November 2022.
In a court filing, Delaware Court of Chancery Judge Kathaleen McCormick ruled, “This action is stayed until 5 p.m. on October 28, 2022, to allow the parties to close the transaction. If the transaction does not close by 5 p.m. on October 28, 2022, the parties are directed to contacted me by email that evening to get a trial date of November 2022.”
Twitter Slams Elon Musk, Expects Him to Cause ‘Further Damage and Delays’
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Before the judge made his decision, Twitter rejected Musk’s proposal to ask the judge to delay the trial date. Although Musk has verbally agreed to buy back Twitter at the original price of $44 billion, board members are understood to be wary of Musk’s sudden turnaround, given that he has debated whether or not to buy the social media giant since they struck. original agreement in April.
Twitter officially opposed Musk’s motion to delay the trial date, calling it “an invitation to further damage and delay.” Musk’s team has said that it’s possible for them to close “on or around October 28,” which is about two weeks after the initial trial date.
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Twitter hopes the judge will rule that the proceedings will begin on October 17 as scheduled. In a court filing, attorneys representing the social media company said, “At the very least…Defendants should have arranged to close on Monday, October 10. But they don’t. Instead they refuse to commit to any closing date. They are asking for an open offer, at the expense of Twitter shareholders (who own $44 billion plus interest), while remaining free to change their minds again or invent new reasons to avoid the contract.”
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“Until the Defendant commits to shut down as required, Twitter reserves the right for its day in Court, to demonstrate its entitlement to certain performances and prove the Defendant’s violation to ensure full relief if the shutdown does not occur for any reason,” continued the statement. “The Defendant can and should close next week. Until they do, this action cannot be disputed [as Musk’s motion insisted] and should be brought to court.”
Tesla CEO Changed His Mind Just Before He Was Almost Deposed
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Many are curious about the timing of Elon Musk’s sudden change of heart, which happened just days before he was to be ousted. Instead, he sent Twitter a letter agreeing to buy the company at the original price of $54.20 per share they had agreed to in April. Once the news was announced, Twitter shares spiked and stopped several times.
Still, Twitter shareholders are understandably nervous that Musk might change his mind again and try to find a new way out of the trial. As a representative for Twitter said, “The defendant declared they intended to close after all. ‘Trust us,’ they said, ‘We mean it this time,’ so they asked to be released from the account for the reward.”
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Musk insisted that “his debt financing side is working together to fund the closing,” which is now expected “on or around October 28.” Attorneys for Elon Musk added, “As a result, there is no need for an expedited trial to order the Defendants to do what they have done and this action is now moot.”
“But Twitter won’t take yes for an answer. “Incredibly, they insist on continuing this litigation, recklessly, putting the deal at risk and jeopardizing the interests of their shareholders,” the motion added. “Proceeding to trial is not only a huge waste of the parties and judicial resources, it will affect the ability of the parties to close the transaction.”
However, Twitter responded by saying, “The obstacle to ending this litigation is not, as the Defendants claim, that Twitter is unwilling to take yes for an answer. The obstacle is that the Defendants still refuse to accept their contractual obligations.” They added, “The merger should have been closed a long time ago.”
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Source: thtrangdai.edu.vn/en/
