Elon Musk filed a private countersuit against Twitter on Friday, intensifying his legal battle with the social media platform over his attempt to back out of the $44 billion (approximately Rs. 3.5 lakh crore) purchase.
Although the 164-page document was not accessible to the public, a redacted version could soon be made available in accordance with court procedures. Musk’s complaint was submitted hours after Delaware Court of Chancery Chancellor Kathaleen McCormick scheduled a five-day trial commencing on October 17 to decide whether Musk may back out of the agreement.
A request for comment from Twitter did not immediately receive a response. A Twitter shareholder filed a lawsuit against Musk on Friday as well, requesting that the court force the billionaire to complete the transaction, declare that he violated his fiduciary obligation to Twitter shareholders, and provide damages for the losses he caused.
According to the complaint, which requests class-action status, Musk owes a fiduciary obligation to Twitter’s shareholders because of his 9.6 percent ownership position in the business and the takeover agreement, which gives him the power to veto numerous corporate decisions. Luigi Crispo, who owns 5,500 shares of Twitter, filed the complaint in the Court of Chancery.
The most wealthy man in the world and Tesla’s CEO, Musk, announced his decision to end the acquisition on July 8 and accused Twitter of breaking the terms of the deal by exaggerating the number of bogus accounts it had on its platform.
Days later, Twitter filed a lawsuit, claiming that Musk was required by the merger pact to seal the acquisition at $54.20 (about Rs. 4,500) per share and that the false account accusations were a diversion. The company’s shares had their highest close since Musk walked away from the agreement on Friday when they closed at $41.61 (almost Rs. 3,500).
To lessen the possible harm to Twitter that the deal’s ambiguity may bring, McCormick accelerated the matter to trial last week. Twitter has attributed Twitter’s declining income and internal commotion on the legal battle. The trial was set for October 17, but the two parties couldn’t agree on how much access to internal papers and other evidence should be allowed during discovery.
This week, Elon Musk accused Twitter of being slow to respond to his discovery requests, and Twitter countered that he was requesting a tonne of information that was unrelated to the case’s central question of whether Musk had broken the terms of the pact. In her ruling on Friday, the top judge seemed to foresee future issues over discovery.
Additionally, Musk will stand trial for one week starting on October 24 in Wilmington, Delaware. A Tesla shareholder is attempting to invalidate the CEO’s record-breaking $56 billion (approximately Rs. 4.5 lakh crore) compensation package from the electric vehicle manufacturer on the grounds of corporate waste and unjust enrichment.