Patience Leonard, PBA Journalism MenteeTwitter, on Tuesday started making its case ahead of trial for Elon Musk’s $44 billion acquisition of the company, after he backed out in the takeover deal.
With Delaware Court of Chancery ruling in Twitter’s favour on Tuesday, the trial will be a five-day event in October, instead of September as pleaded by the microblogging platform.
Musk had earlier on Friday accused Twitter of seeking a “warp speed” trial to “railroad” him into buying the company.
Note that, Musk had also wanted the trial in February 2023, so as to investigate his doubts about fake or bots account, since he agreed to buy Twitter in April.
He claimed the company has failed to provide adequate information about the number of fake, or “spam bot,” accounts. Musk further said the company breached its obligations under the deal by firing top managers and laying off a significant number of employees.
However, in response to this, the company’s lawyer, William Savitt, said that the “continued uncertainty” over the acquisition deal is causing harm on the company.
The company also said that embracing Musk’s “slow walk” proposal for a 2023 trial shortens time for additional lawsuit over deal financing, which expires in April, in case court closes the suit.
In favour of Twitter, Chancellor Kathaleen St. Jude McCormick, the head judge of Delaware’s Court of Chancery, known to preside over many high-profile business disputes, said “The longer the delay, the greater the risk.” This resulted in the case set for October.
A professor at the University of Connecticut School of Law, Minor Meyers, had commented that he expected McCormick, the head judge, to adopt a trial schedule close to Twitter’s proposal.
“The longer it drags on, the more distraction for Twitter. There’s more risk, more things that can go wrong,” he said.
Moreover, reports have revealed that Twitter’s stock has dropped from above $50 a share when the deal was announced to as low as $32.55 last week.
On Tuesday morning, the company traded around $39.16, about 2% and near the highest level since Mr Musk said he was walking away.
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