Twitter wins bid for expedited trial to force Musk to close $44 billion acquisition

Twitter wins bid for expedited trial to force Musk to close  billion acquisition
KEY POINTS
  • Twitter won its motion for an expedited trial in its lawsuit against Elon Musk on Tuesday.
  • Delaware Court of Chancery chancellor Kathaleen McCormick ruled in favor of an expedited trial after a hearing conducted via teleconference.
  • Musk wanted a trial to commence next year.

Twitter won its motion for an expedited trial in its lawsuit against Elon Musk on Tuesday. Delaware Court of Chancery chancellor Kathaleen McCormick ruled in favor of an expedited 5-day trial, to take place in October, after a hearing conducted via teleconference.

Twitter is seeking to enforce Musk’s $44 billion acquisition of the company despite Musk’s intentions to back out of the deal.

The legal squabble, to be tried in the Delaware Court of Chancery, stems from Musk’s decision to terminate his $44 billion acquisition of Twitter.

Musk, via his attorneys, sent a letter to Twitter chief legal officer Vijaya Gadde in July explaining why the billionaire believed his acquisition should no longer proceed. The lawyers alleged that Twitter underreported the number of spam and fraud accounts on its messaging service and failed to send Musk information that could presumably help the executive better calculate those statistics.

Twitter later sued Musk and some of his associates in late July over allegations that the billionaire “refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”

At the time, Twitter was seeking a 4-day trial to commence in September.

Musk and his attorneys, however, later asked the court to deny Twitter’s request for a fast trial. Instead, the billionaire and his lawyers want a court trial to take place next year, alleging that Twitter initiated a “sudden request for warp speed after two months of foot-dragging and obfuscation,” according to a court filing.

This article was originally published on cnbc.com

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