A Delaware Chancery Court judge said Twitter can fast-track its lawsuit against Elon Musk as it seeks to hold him to his $44 billion deal to buy the social media company.
Chancellor Kathaleen St. Jude McCormick, the chief judge of the Delaware Chancery Court, set a five-day trial in October, citing the “cloud of uncertainty” hanging over Twitter since Musk said he wanted out.
“Typically, the longer the merger transaction remains in limbo, the larger the cloud of uncertainty cast over the company and the greater the risk of irreparable harm to the sellers,” the judge said, The Wall Street Journal reported,
Twitter had asked the court for a four-day trial starting Sept. 19saying Musk’s attempt to abandon the deal has affected the business and its shareholders.
Twitter says Musk, the billionaire CEO of Teslahas been trying to back out of the deal because market conditions have deteriorated, and the value of Musk’s shares in Tesla have dropped by more than $100 billion since their peak in November 2021.
Musk had asked the court to delay a trial until February, saying he still needs to investigate how many Twitter accounts are spam or fake, an issue he says affects Twitter’s value.
Twitter has said less than 5% of its monetizable daily active users are spam or fake, a figure Musk thinks could be as high as 20%. Twitter has said it can’t divulge the private account information to verify the figures externally.
Musk also said that preparing for a trial could need substantial time for discovery.
Chancellor McCormick heard arguments on the trial schedule over a teleconference from each side Tuesday morning before making the ruling.
Musk agreed in April to buy Twitter for $54.20 a share. The stock is currently trading around $39.88, and rose 3.9% on Tuesday.
Write to Janet H. Cho at [email protected]
Credit: www.marketwatch.com /