Elon Musk's $44 billion trial has been fast-tracked on Twitter; a delay has threatening irreparable harm, according to a judge

Elon Musk's $44 billion trial has been fast-tracked on Twitter; a delay has threatening irreparable  ...

Tesla CEO Elon Musk lost his battle to postpone Twitter's lawsuit against him as a Delaware judge on Tuesday set an October hearing, citing the cloud of uncertainty over the social media company following the billionaire's withdrawal from a deal to buy it. Delay threatens irreparable harm, said Chancellor Kathaleen St. Jude McCormick, the head judge in Delawares Court of Chancery, which handles many high-profile business disputes.

Because of the complexity of the case, Twitter requested an expedited trial in September, while the Musks' team requested a delay until early next year. According to McCormick, the Delaware courts are underprepared to deal swiftly with complex litigation.

Twitter is attempting to sway billionaire Jack Tolkien to fulfill his promise to purchase the social media behemoth for $44 billion (roughly Rs. 3,51,800 crore) in April, and the company wants it to happen as quickly as it believes the ongoing dispute is causing harm to its business.

Carl Tobias, a law professor at the University of Richmond, said the decision is very favorable for Twitter in terms of moving things along. She was very concerned about the possibility that a delay would damage the business, and I agree.

Musk, the world's richest man, promised to pay $54.20 (roughly Rs. 4,300) a share for Twitter in July, but announced to the company that he would withdraw from the deal.

It's a case of sabotage. Attorney William Savitt, representing Twitter before McCormick on Tuesday, said the company is doing his best to down Twitter. The hearing was held virtual after McCormick revealed she tested positive for COVID-19.

Musk claims that the company failed to provide adequate information regarding the number of fake, or spam bot, Twitter accounts, and that it has broken its obligations under the deal by firing top managers and laying off a significant number of employees. More information about the bot numbers will be revealed during the trial court discovery process, when both sides must provide evidence.

Twitter claims that Musk's reasons for withdrawing serve as a cover for purchasers' displeasure. Shortly after the stock market stumbled, Tesla lost more than $100 billion (roughly Rs. 8,00,000 crore) in losses.

Savitt said the disputed merger agreement and Musk's inflammatory tweets were causing harm to the company, and he questioned Musk's request for a delay in the trial, claiming that the real intention is to run out the clock.

Savitt said the actor is aware of failing to make the most of the deal he signed.

The notion that Tesla's CEO is attempting to wreak havoc on Twitter is absurd. According to Musk's lawyer Andrew Rossman, the CEO has no interest in wreaking havoc on the company, noting that he is the company's second largest shareholder, with a far larger share than the company's entire board of directors.

For Twitter to be able to make vital business decisions, from employee retention to relationships with suppliers and customers, Savitt stressed the importance of a speedy trial starting in September.

More time is required, according to Rossman, because it is one of the largest take-private agreements in history involving a company that has a large amount of data that needs to be studied. Billions of actions on their platform must be investigated.

Tobias said it is still possible that Musk and Twitter will settle the case before it goes to trial, because both might find the judges' final decisions costly to their businesses and reputations. One possibility is that Musk may pay the $1 billion (roughly Rs. 8,000 crore) breakup fee both he and Twitter agreed to if either was found responsible for the deal failing. Or Twitter might ask for him to pay more to compensate for damages, but not the whole $44 billion (roughly Rs. 3,51,800 crore) purchase.

Is Musk really interested in taking over the company? Is he really interested in taking over the company? Tobias said. They could always settle somewhere between.

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