According to Deadline, the Twitter case against Elon Musk is moving forward. The court ruled in his favor, citing the bot issue as the main reason for resolving the deal. The other possibility is that Twitter may be able to recover some of its losses, as reported by Bloomberg.
Whatever Musk likes, the Twitter lawsuit against Elon Musk is moving forward. The trial date for the case was set for five days in October. Originally, Twitter wanted a trial in September, while Musk wanted one in February. According to Deadline, the court opted in in Twitters favor, choosing something much less harmful to the company.
Elon Musk initially offered to buy Twitter in April for $44 billion. He then reneged on the agreement in July, citing his desire that Twitter demonstrate that spam and fake accounts are less than 5% of their daily active users. Musk even tweeted a meme in response to the lawsuit, claiming that Twitter will now have to disclose its bot statistics in court.
Elon Musk discussed his concerns about the bot accounts on Twitter's platform in June, along with several other issues that needed to be resolved. During his appearance, Musk discussed the bot statistics, the need for shareholder approval, and the debt portion of the agreement.
It will be interesting to see where this legal fight ends up, but things appear to be lining up in Elon Musks favor. One provision of the agreement states that there will be a $1 billion breakup fee for the transaction if there is a good reason. So, even if Musk is able to prove there is a good reason for dissolving the agreement, he will have to pay at least $1 billion to Twitter.
It's possible that Twitter will be able to forego Musk's decision in this trial. At the very least, the case might conclude in a settlement. This would give Twitter more than the $1 billion breakup fee, and Musk would get out of paying $44 billion for the social media giant. Until the trial, we'll probably have little more information.