the trial against Elon Musk will take place in October
Published on : Changed :
The trial of Elon Musk’s aborted $44 billion acquisition of Twitter will take place in October, a Delaware judge announced Tuesday, where the hearings will be held. An announced showdown in which the multi-billionaire did not win according to specialists.
It was in Delaware that the first legal action in the dispute between Elon Musk and Twitter was opened on Tuesday July 19. An American judge from this small eastern American state set the start of Twitter’s trial against Elon Musk on Tuesday, July 19, for October 2022 in five days, which gave the request of the social network for a quick procedure. .
The platform launched lawsuits against the boss of Tesla and SpaceX on Tuesday, July 12, to force him to fulfill his promise to acquire it for 44 billion dollars.
Twitter requested an expedited procedure, in September, so as not to prolong the period of uncertainty that partially paralyzed the company.
Judge Kathaleen McCormick, president of a Delaware business law court, acknowledged that “the delays risk doing irreparable damage to Twitter.” He also mentioned that it is not certain that the payment of damages from Elon Musk will be enough to repair the damage suffered. The hearing took place via Zoom, the judge tested positive for Covid-19.
Elon Musk’s lawyers filed an appeal on Friday July 15 to prevent the battle from opening before next year. They ensure that experts have to analyze “mountains of data” to prove, as the multi-billionaire says, that the platform is full of automated accounts and spam, which is more than the proportion of 5% official which is indicated.
This is the reason given by Elon Musk for the unilateral termination of the agreement to take over the social network that he considers a “public square” important to “democracy”.
“This topic that Musk says will require a complex review is a fictitious problem, designed to complicate things and cause delays,” said William Savitt, Twitter’s attorney. “The merger agreement doesn’t even mention bots or spam,” he insisted.
“We suspect that Elon Musk wants to delay this test long enough to avoid liability. […] He knows that in such circumstances, justice delayed is often justice not done. That’s what he expected,” he said.
Although she is suffering an image crisis after months of attacks and slander from her former lover, the platform is the favorite in this showdown. “Twitter’s stock is in good shape [depuis le dépôt de la plainte]”, noted Wedbush Securities analyst Dan Ives. “It seems that many investors who read this decided that the Game of Thrones showdown in the courts will end in a victory for Twitter.
By “victory”, the expert means a judge’s decision that will force Elon Musk to buy the company at the price agreed upon at the end of April (54.20 dollars per share) or pay significant damages. The chances of him getting away with just paying the termination indemnities (one billion dollars), or of having his rights declared, are considered very low.
Elon Musk “in bad faith” according to Twitter
The trial is pending in the Delaware Court of Chancery whose president Kathaleen McCormick – the first woman in this position – is handling the case.
“She is a very serious judge, who will not be intimidated by either side. […] In the past, he has not been kind to those who show bad faith,” said Adam Badawi, a law professor at the University of Berkeley.
In its complaint, Twitter accused Elon Musk of showing “hypocrisy” and “bad faith”. The company’s lawyers believe he changed his mind in the face of recent declines in stock market valuations of technology companies. Judge Kathaleen McCormick is best known for ordering Kohlberg, a company that also tried to cut a deal, to buy the company in question, DecoPac.
An “irrational” multi-billionaire?
The fate of bluebird, a social network used worldwide by politicians, celebrities, activists and influencers, seems to have little in common with lesser-known organizations. But “it is not different enough, in my opinion, for Delaware to risk its reputation by deciding not to implement the terms of the agreement”, Adam Badawi considered.
The multibillionaire and the board of directors could still choose to agree to a slightly lower price and thus avoid the lawsuit.
“But that would be reasonable reasoning,” said Adam Badawi, referring to Elon Musk’s unpredictability. In another case tried in Delaware, Elon Musk “showed his willingness to go all the way,” the professor added. “And he won. I don’t think his instinct is necessarily to come to an arrangement.”