U.S court takes sides with Twitter in acquisition trial date against Elon Musk.
By Naomisophyblog
United States judge, Kathaleen McCormick, presiding over the case between Twitter and billionaire, Elon Musk, has backed the company’s request to fast-track the acquisition trail.
On Tuesday, the Delaware’s Court of Chancery judge chose October for the commencement of the trail, one month after Twitter’s proposed September, and against Musk’s preference of February.
The businessman’s lawyer, Andrew Rossman, had told the court that the September date was unjustifiable considering the timeframe doesn’t give Musk’s team enough time to investigate the bot accounts, which forced him to terminate their deal.
Ripples Nigeria had reported that Musk backed out of the $44 billion takeover deal on July 8, 2022, over Twitter’s refusal to grant him access to their fake account data, with Musk describing it as a breach of contract.
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Rossman had argued for a February date, but Twitter said prolonging the trial will have a negative impact on its operation and shareholders’ investment, as well as debt financing for the deal.
Explaining the importance of fast-tracking the trial, Twitter’s lead lawyer, Bill Savitt, told the judge that delay “inflicts harm on Twitter every hour of every day.”
Savitt stated further that the trial in February could threaten the takeover in the long run, as the $13 billion debt funding Musk received from banks to finance the Twitter takeover expires in April 2023.
Judge McCormick shared the same sentiment, stating, “The reality is that delay threatens irreparable harm to the sellers and Twitter,” adding, “The longer the delay, the greater the risk.”
