Elon Musk opposes Twitter over $44 billion deal amid new shareholder legal action | Twitter

Elon Musk has contradicted Twitter and escalated his legal battle with the social media company over its bid to walk away from the $44 billion purchase.

Musk’s lawsuit was filed on Friday, hours after Chancellor Kathaleen McCormick of the Delaware Court of Chancery ordered a five-day lawsuit from Oct. 17 to determine whether Musk can walk away from the deal.

The entrepreneur’s 164-page document was not publicly available, but an edited version could be published soon, based on court rulings.

Twitter did not immediately respond to a request for comment.

Also on Friday, Musk was sued by a Twitter shareholder who asked the court to order the billionaire to close the deal, finding that he had breached his fiduciary duty to Twitter shareholders and is awarding damages for losses caused.

The lawsuit, seeking class status, alleges Musk has a fiduciary duty to Twitter shareholders because of his 9.6% stake in the company and because the acquisition deal gives him a veto over many of the company’s decisions. . The lawsuit was filed by Luigi Crispo, who owns 5,500 Twitter shares, in the Chancellery Court.

Musk, the world’s richest person and Tesla CEO, said on July 8 that he was opting out of the acquisition and blamed Twitter for violating the deal by misrepresenting the number of fake accounts on his platform.

Twitter sued days later, calling the fake account a distraction and saying Musk was bound by the merger contract to close the deal for $54.20 a share. Shares of the company ended Friday at $41.61, the highest close since Musk exited the deal.

McCormick expedited the case in court last week, saying she wanted to limit the potential damage to Twitter caused by the uncertainty of the deal.

Twitter blames the court for declining revenue and causing chaos within the company.

The two sides had agreed in principle to a trial on October 17, but disagreed over the limits of discovery, or access to internal documents and other evidence.

Musk accused Twitter this week of dragging his feet in response to his discovery requests, and Twitter accused him of seeking massive amounts of data irrelevant to the main issue in the case: whether Musk had violated the deal contract.

The chief judge in her ruling on Friday seemed to anticipate discovery disputes to come. “This order does not resolve specific discovery disputes, including the accuracy of large dataset requests,” McCormick said.

Musk also faces a week-long trial in Wilmington, Delaware, which begins Oct. 24. A Tesla shareholder wants to invalidate the CEO of the electric vehicle manufacturer’s CEO as corporate waste and unjust enrichment.

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