Elon Musk reportedly opposes Twitter’s attempt to speed up the legal process.

Elon Musk reportedly opposes Twitter's attempt to speed up the legal process.
Elon Musk reportedly opposes Twitter’s attempt to speed up the legal process.

 

Twitter sued Musk after Musk decided to pull out of a $44 billion acquisition deal.

Washington:

Elon Musk ,Tesla CEO Elon Musk has opposed Twitter’s request to speed up the trial of his decision to end the $44 billion acquisition deal.

Musk filed a motion on Friday seeking to delay the court hearing, Fox Business reported.

Musk’s lawyers said Twitter’s “unreasonable request” to speed up the merger trial within two months should be rejected.

The filing was done in Delaware Chancery Court.

Twitter sued Musk a few days ago after he decided to pull out of a $44 billion acquisition deal.

The lawsuit, filed Tuesday in Delaware Chancery Court, accuses Musk of hypocrisy, The Verge reported. ”

Twitter is taking this action to bar Musk from further violations to compel Musk to comply with his legal obligations and to force completion of the merger after a few pending conditions are met,” Twitter wrote in the lawsuit.

The lawsuit marks the start of a protracted legal battle as Twitter tries to get Musk to comply with his deal to buy the company for $54.20 a share.

Twitter, dismissed by M&A giant law firm Wachtell, Lipton, Rosen & Katz, claimed that Musk tried to evade a deal that would require a “material adverse effect” or default. ”

Musk had to try and conjure one of them,” the lawsuit says. Musk announced the termination of a $44 billion Twitter purchase in a letter sent to Twitter by Musk’s team last week, due to multiple breaches of the purchase agreement.

In April, Musk agreed to buy Twitter for $54.20 per share, in a deal worth about $44 billion. However, Musk put the deal on hold in May to allow his team to review the veracity of Twitter’s claim that less than 5% of accounts on the platform were bots or spam.

Back in June, Musk publicly accused the microblogging site of violating the merger agreement and threatened to leave and cancel its acquisition of the social media company after he failed to provide the information he requested about spam and fake accounts. data. Citing a letter he sent to Twitter’s head of legal, policy and trust Vijaya Gadde, Musk reported that, as stated in the deal, Twitter was “actively resisting and thwarting his right to information,” according to CNN.

Musk asked Twitter to hand over information about its testing methodology to support its claim that bots and fake accounts make up less than 5 percent of the platform’s active user base, a figure the company has claimed in boilerplate public disclosures for years.

Related : Elon Musk Deletes Twitter Deal Worth $44 Billion

Elon Musk cancels a huge deal with Twitter

The judge overseeing Twitter Inc’s $44 billion lawsuit against Elon Musk has a serious reputation and is one of the few jurists to have ordered a reluctant buyer to complete a U.S. corporate merger.

Kathaleen McCormick took over as Lord Chancellor or Chief Justice of Chancery last year, the first woman to hold the position. On Wednesday, she was assigned to a Twitter lawsuit aimed at forcing Musk to complete his deal on the social media platform in what is expected to be one of the biggest legal showdowns in years.

“She has a track record of not condoning some of the worst behavior we’ve seen in these areas when people want to get out of a deal,” said Adam Badawi, a law professor at the University of California who specializes in corporate governance. Berkeley . “She’s a serious, no-nonsense judge.”

In contrast to Musk’s reckless and capricious behavior, she is known for being soft-spoken, approachable, and affable — but also someone who stands her ground. She advocates respect and integrity among litigants at legal conferences.

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“We always support each other, we always go out for drinks after a fight, and maintain that level of civility,” she said at a gathering at the University of Delaware this year.

After weeks of confrontational tweets suggesting Twitter was hiding the true number of fake accounts, Musk said Friday that he would end its $54.20-a-share acquisition of Twitter, valued at $44 billion. On Tuesday, the social media platform filed a lawsuit.

Judges have only ordered reluctant buyers to complete corporate takeovers on a handful of occasions, according to legal experts and court records. One of them is McCormick.

Last year, McCormick caught the attention of Wall Street dealmakers by ordering an affiliate of private equity firm Kohlberg & Co LLC to complete its $550 million acquisition of DecoPac Holding Inc, a maker of cake-decorating products.

She described her ruling as “a victory for deal certainty” and dismissed Kohlberg’s argument that it could go away for lack of funding.

The case shares many similarities with the Twitter deal. Like Musk, Kohlberg said DecoPac was leaving because it violated the merger agreement. Like Musk, Kohlberg partly believes that DecoPac has failed to stay afloat.

There are also differences. Musk’s deal is larger, involves a target company that is publicly traded on Twitter, and could have implications for Tesla Inc, the source of most of Musk’s wealth.

In other cases, she sided with shareholders when they clashed with management.

Last year, she blocked energy company The Williams Cos Inc from taking a so-called poison pill anti-takeover move, saying it violated their fiduciary duty to shareholders.

Last month, she said Carvana Co shareholders could sue the board for a direct issue of stock to select investors when the stock price was depressed early in the pandemic.

A graduate of Notre Dame Law School, McCormick began her career with the Delaware chapter of the Legal Aid Society, which helps low-income people navigate the court system.

She told the Delaware Senate during her confirmation hearing that she entered private practice “primarily for financial reasons,” joining Young Conaway Stargatt & Taylor, one of the state’s major business litigation firms.

She joined the Chancery Court in 2018 as Vice-Chancellor and last year became the first woman to lead the Chancery Court.

Despite his mild tone, Eric Talley, who specializes in corporate law at Columbia Law School, said he doubted McCormick would be intimidated by Musk.

“I wouldn’t bet on Prime Minister McCormick suddenly being weak,” he said.

 

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