Twitter is suing Elon Musk for pulling out of the $44 billion purchase deal. The billionaire, filed his response and counterclaims against Twitter.
Musk’s counterclaims are a steep escalation in the legal battle between a major tech company and the world’s richest man. Twitter is suing Musk over the deal he signed on April 25 with the social network.
Musk’s move against Twitter was made public the day after Kathaleen McCormick, Chancellor of the Delaware Court of Chancery overseeing the lawsuit, issued a ruling. She demanded that the five-day trial begin on October 17, 2022.
Judge McCormick ordered Twitter to respond to the counterclaims by August 4, 2022. The investigation phase of the trial will end in the first half of September.
It’s unclear at this time when the public version of Musk’s counterclaims will be available. the Wall Street Journal confirmed that a redacted version of Musk’s counterclaims will be available ” from next week “.
Although the court filing is not immediately available to the public, Musk’s legal team has repeatedly focused its case on the platform’s number of bot accounts, information that Musk’s attorneys say does not was made available to them only after the signing of the agreement, but which could “to have a significant impact” on the profitability of Twitter.
“Litigation over fake accounts and spam accounts is fundamental to the value of Twitter. This litigation is extremely complex in terms of facts and expertise, and requires a considerable amount of time for discovery”, Musk’s attorneys said in a July 15 filing. They asked for a trial date to be set for February 2023, and added that Twitter’s refusal to release this information caused Musk to withdraw from the agreement on July 8.
Musk’s attorneys say the platform’s monetizable daily active user count revealed a large proportion of fake bot-run accounts. An avid Twitter user, Musk recently alluded to the discovery via a tweet, noting the impact of bots on the platform’s profitability.
— Elon Musk (@elonmusk) July 11, 2022
Meanwhile, Twitter during the July 19 hearing said Musk tried to “sabotage” the social media company by requesting a schedule “unreasonably elongated”.
“Musk was and remains contractually obligated to do his best to complete this deal”, said William Savitt, the lawyer representing Twitter, during the hearing. Twitter also requested that the trial take place in September 2022.
“What he is doing is quite the opposite, it is sabotage”Mr. Savitt said.
Judge McCormick, who presided over the hearing, sided with Twitter and ordered a five-day trial to take place in October 2022.
“The reality is that the delay threatens to cause irreparable harm to sellers”Judge McCormick said in her decision, referring to Twitter. “The longer the delay, the greater the risk. »
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