In response to Elon Musk’s termination of his $44 billion bid for Twitter, the company said it was going to embark on legal actions against the Tesla boss to enforce the merger agreement. “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” Twitter’s board chairman Bret Taylor shared via a tweet.
Twitter filed a suit against Elon Musk last week with claims that Elon Musk was refusing “to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests” after entering a binding merger agreement. Twitter board’s chairman Bret Taylor said the suit was filed to “hold Elon Musk accountable to his contractual obligations.”
On Tuesday, the Delaware Court of Chancery Chancellor Kathaleen McCormick ruled in favor of Twitter to speed up the trial between the company and the world’s richest man Elon Musk to force his acquisition of Twitter. The five-day trial is scheduled for October this year. Twitter had initially wanted a four-day trial in September.
Twitter’s lawyer Bill Savitt of Wachtell, Lipton, Rosen & Katz argued that the company’s request for a September trial was in line with the timelines for similar cases that have occurred in the past. According to him, a quick trial is extremely important to stop the harm that Twitter has suffered as a result of Elon Musk’s termination.
Elon Musk had wanted the trial delayed till next year and according to Twitter’s lawyer Bill Savitt, it was only a scheme to “run out the clock” by leaving little time for appeals before the debt commitments he made to finance the deal expire.
On the other hand, Elon Musk’s lawyer Andrew Rossman of Quinn Emanuel is of the opinion that the timeline was not enough to review all the required data on Twitter. Elon Musk wants to review Twitter’s data to verify the number of spam accounts on the platform. Elon Musk’s lawyer also claims that Twitter wants to keep hiding this data and that the company had failed to provide the information Elon Musk wanted which led to the termination of the deal.
Determining the number of spam accounts is not important for the deal, Twitter’s lawyer Bill Savitt said adding that “nothing in the merger agreement turns on that question.”