Elon Musk strikes back. After a complaint filed by the social network aimed at forcing it to proceed with its $44 billion acquisition, the billionaire also filed a complaint against Twitter. The lawsuit, filed confidentially, is reported by Reuters, adding that an edited version of the 164-page document may soon be made public. Therefore, the arguments put forward by Elon Musk are not yet known, as well as the reasons why he filed this complaint in confidence when he does not hesitate to vent on social networks or in front of the press.
Judgment in October
This filing of a complaint takes place immediately after a trial date has been set. The start is scheduled for October 17 and will last 5 days. The goal is to determine during this hearing whether Elon Musk can opt out of the Twitter acquisition.
Last April, the billionaire announced that he had reached an agreement to acquire Twitter for $44 billion. But a few weeks later, Elon Musk temporarily suspended his offer. He mentioned spam and fake accounts that will be present on the platform in large numbers and make it difficult to promote targeted advertising. Since then, the billionaire has continued to cover the subject of fake accounts until he terminated the acquisition agreement in early July.
Setting a relatively close date meets the needs of the social network, but not Elon Musk, who wanted a long trial on a distant date. Delaware Court Chancellor Kathleen McCormick set the date to limit potential damage to Twitter from the deal’s uncertainty. The action of the social network regularly fell into the twists and turns of this soap opera. Twitter blames this legal battle for falling revenue and chaos within the company.
The shareholder files a claim
If the date of the trial is set, it is still necessary to accurately determine its contours. The parties disagree over access to internal documents and other evidence, according to Reuters. Elon Musk accuses Twitter of being slow and not responding to his requests. Twitter, for its part, accuses the billionaire of requesting a huge amount of data that is not related to the main problem of the case. Namely: did he violate the acquisition agreement or not?
At the same time, a Twitter shareholder also filed a lawsuit on Friday, July 29, against Elon Musk. Luigi Crispo, who owns 5,500 shares of Twitter, is asking the court to order the billionaire to complete the deal and find that he violated his fiduciary obligations to Twitter shareholders and awarded them damages.