Twitter and Musk have not yet reached deal to end lawsuit: Report

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Musk’s offer to stick with his original plan to buy Twitter is based on the fact that the social media company dropped its lawsuit against him, but that hasn’t happened yet, according to Reuters.

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Elon Musk and Twitter Inc have yet to reach an agreement to end the litigation and clear the way for the Tesla and SpaceX founder to close his $44 billion deal for the social media platform, two people familiar with the lawsuit told Reuters on Wednesday.

Musk, the world’s richest man, said on Twitter late Monday that he would reverse course and honor his April agreement to buy the company at $54.20 a share if Twitter dropped the lawsuit against him.

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On Tuesday, the Twitter legal team and Musk’s lawyers briefed the judge on their efforts to overcome mutual distrust and find a way to close the deal.

“Watch the registry,” one of the sources said.

Musk is due to be ousted on Thursday in Austin, Texas, USA.

“This is a pressure point,” a second source said.

Musk rescinded his testimony in late September, citing concerns about a Twitter lawyer’s possible contact with someone who later tested positive for COVID-19, according to a court document released Wednesday.

Shares of Twitter fell 2.5 percent to $50.72 in early trading. Shares hit their highest level on Tuesday since Musk and Twitter agreed in April that he would buy the company for $54.20 a share.

In July, Musk said he was backing out of the takeover deal because he discovered that Twitter had allegedly misled him about the number of fake accounts, among other things.

Part of Musk’s case was based on allegations by Twitter whistleblower Pater “Maj” Zatko that became public in August.

The Twitter legal team wanted to find out if Quinn Emanuel law firm attorney Alex Spiro, who handled the Musk case, had spoken to the whistleblower back in May. The law firm said in court documents that its lawyers did not communicate with Zatko or his representatives.

Twitter discovered Spiro’s anonymous May 6 email from “a former Twitter executive leading teams directly related to content trust and security/moderation.” The sender offered to communicate by “alternative means”.

Zatko, who was Twitter’s head of security until he was fired in January, said under oath that he did not communicate with Musk or his lawyers at Quinn Emanuel.

The judge, Delaware Court Chancellor Kathleen McCormick, said in a ruling on Monday that it was “at least plausible” that Zatko sent the anonymous email. She ordered Spiro to file a lawsuit by 4:30 pm ET (2030 GMT) explaining his actions regarding the May 6 email.

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