Elon Musk countersues Twitter over $44 billion transaction
Elon Musk has filed counterclaims against Twitter in response to the lawsuit the internet company filed against him to make him stick to his $44 billion agreement to buy the company.
The Delaware Chancery Court told Musk on Friday that he has the right to defend himself in court against Twitter’s claim that he is legally required to finish the deal he signed in April.
The CEO of Tesla made an offer to buy Twitter for $54.20 per share to the board. But on July 8, he said he was “cancelling” their contract because he thought the company lied to him about how many fake and spam accounts it had.
Twitter sued Musk a few days later, saying that the false account claims were just a distraction and that Musk had to finish the deal at $54.20 per share because it was in the merger agreement.
Musk’s 164-page counterclaim was filed as “secret,” but court rules say that he has to release a version of the document that has been changed and made public.
Kathaleen St. J. McCormick, the chief judge of the Chancery Court, has decided that the trial will start on October 17 and last for five days. The millionaire wanted the trial to last for two weeks in February of next year.
Twitter’s stock price ended Friday at $41.61 per share, and the company said that Musk is making up reasons to back out of the deal. The stock price ended Friday at $41.61 per share.
The social media giant said that the billionaire wanted a lot of data that had nothing to do with the main question of the lawsuit, which was whether or not he had broken the transaction contract.
McCormick seems to have known what would happen on Friday. The court said, “This decision does not settle any specific discovery issues, including the legality of any requests for huge data sets.”
The social networking company has asked shareholders to vote in favor of the merger on September 13.
In a draft of a letter to investors, Twitter’s CEO, Parag Agrawal, and board chairman, Bret Taylor, said, “We are committed to completing the transaction on the terms and price agreed upon with Mr. Musk.”
Luigi Crispo, who owns 5,500 Twitter shares, also sued Musk on Friday. Crispo asked the court to force the billionaire to finish the sale. He said that by not doing so, the billionaire broke his duty to Twitter shareholders and should pay for the losses he caused.
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