A court has agreed to Twitter’s request to fast-track the trial for the Elon Musk lawsuit, setting the trial date for October 2022.
Twitter sued Musk in March, alleging that he violated an agreement with the company when he tweeted about taking over the company. In its legal battle to ensure that Tesla (TSLA) CEO Elon Musk honors his $44 billion takeover agreement, Twitter Inc (TWTR.N) will get an October hearing in court, according to a Delaware judge who ruled on Tuesday that the company deserved a rapid conclusion to the deal’s uncertainty.
Twitter Fights Back
Tesla’s acquisition of Twitter has garnered much attention worldwide in both financial and technological circles. On July 9, Tesla’s CEO Elon Musk backed out of the $44 billion buyout to purchase Twitter. The deal would have seen Tesla paying $26 billion in stock and $18 billion in cash for the social media giant. Musk’s tweets about taking over Twitter caused the social media company’s stock price to spike, and the SEC alleged that he had misled investors.
In its lawsuit, Twitter seeks to force Musk to honor the deal or pay damages if he does not honor the agreement. In a one-sentence order, Vice Chancellor J. Travis Laster said the case should be tried as quickly as possible due to the “public interest in this matter.” The ruling means that the trial will likely occur in October of this year instead of next year, as the defense counsel proposed.
“The plaintiffs underestimate the court’s and counsel’s ability to swiftly handle this case,” according to McCormick. “Attorneys will rise to the task of a fast timetable,” added McCormick. The ruling was a victory for Twitter, which has been seeking a speedy trial. In a filing last week, the company’s lawyers said that Musk had “publicly disparaged” the deal and that a delay would only give him more time to “mislead investors.”
Musk’s lawyers had argued that the case did not warrant a fast-tracked trial, saying that the Tesla CEO was not trying to “game the system” and that the issues in the case were not time-sensitive. The deal was almost on the verge of completion and was halted, citing incorrect information about bots on the platform.
What Could The Lawsuit Lead To?
Musk is a frequent user of Twitter who has long supported the site and frequently uses it to communicate his thoughts. Musk now has a following of more than 100 million people on Twitter. Musk backed down from his decision after failing to meet the required obligations under the contract with the social networking giant. According to Elon Musk’s comments, Twitter provided incorrect information regarding the number of bots on their platform, which was one of the primary concerns.
This lawsuit between Twitter and Elon Musk could set a precedent for future deals involving social media companies. The trial is set to begin in October this year, and many crypto enthusiasts seem interested in seeing how this plays out.
The lawsuit is just one of many challenges that Tesla and Musk are facing as the electric carmaker tries to ramp up production of its Model 3 sedan. The company is also facing several lawsuits from shareholders who allege that Tesla misled them about their Model 3 production.
Do you think Elon musk will win against the lawsuit by Twitter? Let us know in the comment section.
