Elon Musk hit back at Twitter Inc on Friday, escalating his battle for wrongdoing against the social media corporation over its bid to walk away from a $44 billion acquisition, even as the lawsuit was once filed confidentially. .
While the 164-page report once could not now be made public, under courtroom rules a redacted version can be made public quickly.
Musk’s lawsuit was filed hours after Delaware Court of Chancery Chancellor Kathaleen McCormick ordered a five-day trial starting Oct. 17 to decide whether Musk can walk away from the deal.
Also learn: Twitter agrees to October 17 trial on Elon Musk deal, though nervous about ‘delay’
Twitter did not immediately respond to a request for comment.
Also on Friday, Musk was sued by a Twitter shareholder, who asked the courtroom to book the billionaire close to the deal, to find that he breached his duty of loyalty to Twitter shareholders and providing damages to the losses it brought.
Musk owes a fiduciary duty to Twitter shareholders because of his 9.6% stake in the company, and while the takeover deal gives him a veto over many corporate choices, the suit seeks to stay the grandeur. The lawsuit was filed by Luigi Crispo, who owns 5,500 Twitter shares, in the Court of Chancery.
Musk, the sector’s richest individual and Tesla Inc’s leading government, declared on July 8 that he was once leaving behind the takeover and accused Twitter Inc of breaching the deal by way of misrepresenting the collection of alleged accounts on the platform. her.
Twitter sued a few days later, calling the pretend account a distraction and announcing that Musk was once safe by way of the merger contract close to the deal at $54.20 in line with the proportion. The corporation’s shares ended Friday at $41.61, the best possible close since Musk abandoned the deal.
McCormick fast-tracked the case to trial last week, announcing that she sought to limit potential damage to Twitter caused by the settlement’s uncertainty.
Twitter has blamed the courtroom fight for falling revenue and causing chaos across the corporation.
The two sides had largely agreed to an Oct. 17 trial, but have been at odds over the limits of discovery, or whether to get access to internal documents and various evidence.
Musk accused Twitter this week of dragging its feet in complying with his discovery requests, and Twitter accused him of seeking vast amounts of knowledge that may be beyond the point of the main factor in the case: whether Musk had violated or not the agreement contract. .
Also learn: Elon Musk breaks his silence on $44 billion, addressing a meme and a slide on Twitter
The leader passed judgment on her order Friday, appearing to expect the discovery disputes to return.
“This order does not resolve any specific discovery disputes, including the propriety of any requests for large data sets,” McCormick said.
Musk also faces a week-long trial in Wilmington, Delaware, starting Oct. 24. A Tesla shareholder is seeking to write off the electric carmaker’s record $56 billion CEO pay package as company losses and unjust enrichment.
