August 8, 2022
Elon Musk seals Twitter in  billion acquisition deal

Elon Musk retaliated on Twitter on Friday, shunning his legal battle against the social media company over a $44 billion (about Rs 3.5 lakh crore) purchase, though the lawsuit was filed confidentially.

While the 164-page document was not publicly available, a revised version could soon be made public under court rules.

Musk’s lawsuit was filed hours after Delaware Court of Chancery Chancellor Kathleen McCormick ordered a five-day trial beginning October 17 to determine whether Musk can walk away from the deal.

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 duty to Twitter shareholders and because of that. compensated for the damages caused.

Musk has a fiduciary duty to Twitter’s shareholders because of his 9.6 percent stake in the company and because the acquisition agreement gives him a veto of many of the company’s decisions, according to the lawsuit, which seeks class status. The lawsuit was filed in the Court of Chancery by Luigi Crispo, which has 5,500 Twitter shares.

Musk, the world’s richest man and Tesla chief executive, said on July 8 that he was abandoning the acquisition and accused Twitter of violating the agreement by misrepresenting the number of fake accounts on his platform.

Twitter sued a few days later, claiming the fake account was a distraction and saying that Musk was obligated to close the deal at $54.20 (about Rs 4,500) per share from the merger contract. The company’s shares ended Friday at $41.61 (about Rs 3,500), the highest since Musk left the deal.

McCormick accelerated the hearing of the case last week, saying she wanted to limit potential damage to Twitter due to the uncertainty of the deal.

Twitter has blamed the court battle for the drop in revenue and creating chaos within the company.

The two sides had originally agreed to an October 17 trial, but were confused about the extent of the search, or access to internal documents and other evidence.

Musk this week accused Twitter of dragging his feet in response to his search requests, and Twitter accused him of soliciting vast amounts of data that are irrelevant to the main issue in the case: whether Musk has violated the contract of the deal. was violated.

The Chief Justice in his order on Friday had anticipated the arrival of search disputes.

“This order does not resolve any specific search disputes, including the justification for any requests for larger data sets,” McCormick said.

Musk also faces a week-long trial in Wilmington, Delaware, starting October 24. A Tesla shareholder is seeking to zero in on what appears to be corporate waste and unjustly enrich the CEO’s record-breaking $56 billion (about Rs 4.5 lakh crore) salary package. Electric vehicle manufacturer.

© Thomson Reuters 2022

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