MADRID, July 20 (EUROPA PRESS) –
Delaware Court of Chancery Judge Jude McCormick ruled Tuesday that the trial for Elon Musk’s reverse purchase of Twitter should take place in October, after Tesla’s founder and CEO requested it be postponed to February for a better deal build up defense of the case .
That’s how McCormick came to an agreement with the company, which had asked to “speed up” the process, although it ended up not happening in September, as Twitter’s legal team initially defended the deal to buy the company should be before October 24, according to CNN.
The judge echoed Twitter’s argument that the “irreparable” damage to the company would increase over time. “The Twitter board has a keen interest in resolving this quickly, and has a keen interest in a delay: time is money,” analyzed a Tulane Law School professor consulted by the New York Times.
In this sense, the lawyers of the social network expressed last Saturday that “they only need four days to prove that the richest person in the world has to fulfill their agreement”.
Musk’s legal team, for their part, suggested the month of February as an alternative date for the trial, arguing that if there is a litigation, the agreement’s deadline would be “automatically extended,” which would not affect the process. Sources close to the Tesla founder indicated that the lawyers wanted a better chance of building their case.
On July 9, the tycoon told Twitter that he was withdrawing from the social network’s purchase agreement after receiving no response from the company to his request for information about the number of fake accounts found on the platform and the company’s way of allocating them check and block received .
Days later, Twitter filed a lawsuit against the billionaire in a Delaware state court to force him to go through with his bid to buy the company after he broke the agreement between the parties.
“Musk appears to believe that unlike any other party subject to Delaware contract law, he is free to change his mind, ruin the company, disrupt its operations, destroy shareholder value,” the company said. as picked up by the NBC News Network.
In mid-May, the tycoon decided to temporarily suspend its $44,000 million purchase of Twitter, which it agreed in late April, pending details that would support the company’s calculation that fake accounts account for less than five percent of users.
Subsequently, in a letter sent by Musk’s attorneys to the United States Securities Market Commission (SEC) in early June, the billionaire’s legal team considered Twitter’s position a “material breach” of its obligations under the merger agreement and warned that Elon Musk “Retains all rights arising therefrom, including its right not to consummate the transaction and its right to terminate the merger agreement.”