Twitter won the first battle against Elon Musk in court. Judge Judd McCormick heard the parties’ arguments and decided that the trial to resolve the dispute over the $44,000 million purchase of the technology company would take place within five days in October. The social network has applied to the Delaware Stock Court for a swift process alleging that every day of uncertainty is a blow to the company’s actions and performance. On the other hand, the billionaire’s lawyers demanded that the process be postponed until February 2023 so that the necessary analyzes can be carried out to determine the number of false accounts and spam on the platform.
The first preparatory hearing for the trial was held electronically because Judge McCormick contracted the coronavirus. Twitter lawyers asserted ahead of the Togada meeting that Elon Musk’s stalling efforts were an “attempt to sabotage.” “He’s doing everything he can to bring Twitter down,” said Bill Savitt, an attorney at the law firm Wachelle, Lipton, Rosen and Katz. He does everything in his power to harm and expose the company. Savit added, who believes the process should be completed before the financing agreements with the banks expire in April next year.
The social network requested last week that the operation be carried out in September to reduce the impact of the soap operas on the value of shares. However, its price stabilized and began to rise in the face of the near-unanimous opinion that Twitter has a good chance of succeeding in its fight until the businessman fulfills his offer to pay $54.20 per share. The social network’s lawyers asserted that the failure to agree was hurting San Francisco “every hour and every day”. This Tuesday, the bag took the trial announcement with optimism. Twitter shares are up nearly 3%, buoyed by an almost unanimous opinion of experts that the tech company will prevail in the process.
The judge agreed with the San Francisco attorney’s reasoning. “Usually, the longer one of these mergers is in limbo, the more a cloud of uncertainty will spread over the company, increasing the irreparable risk to the seller,” McCormick said.
Musk is vacationing on a yacht in Greece with Hollywood agent Ari Emmanuel. Meanwhile, his legal team continues the offensive. His attorney, Andrew Rosman, of the law firm Quinn Emmanuel, accused Twitter of failing to provide information about fake accounts and spam. Entrepreneur Tesla and Space X believe these two account for more than 20% of the platform and have made it a condition of the verified agreement that they account for less than 5%. This number is important, according to Musk, because it helps him determine the number of monetized users. The issue was a tug-of-war between the two parties. Twitter claims that it has done its best to share data with the buyer without violating its privacy policies by sharing users’ personal information. Musk’s team requested a delay in the trial to analyze the “massive amount of information” and billions of interactions on Twitter.
But Savit tried to change the story of the trial. “This case is not about that. This is a fabricated matter,” the lawyer used at the Zoom conference. Savit says that in the original agreement, the company made no promises about the dummy account scale and that the agreement is not based on it. He explained that the company informed the regulator, the Securities and Exchange Commission, that the amount may be higher than its estimates. Rossman responded that Twitter wanted to bury the truth about the controversy and said his client had a right to know the exact number as the company’s second largest shareholder.
Subscribe here to the news From EL PAÍS America and receive all the media keys for current affairs in the region