Elon Musk is plotting to file a countersuit against Twitter to get out of his $44 billion buyout agreement.
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His attorneys are in the works of asking a Delaware Court of Chancery judge to allow more time and power to collect more information about Twitter bots, as reported by the New York Post. The decision was made a week after Twitter filed a lawsuit in the state and accused the Tesla CEO of agreeing to buy the social media platform, then attempting to slander the company by disrupting “its operations, destroy stockholder value, and walk away.”
Musk has 20 days from when Twitter filed its suit to file his countersuit.
“The earliest possible trial date is imperative. This very public dispute harms Twitter with each passing day Musk is in breach. Musk amplifies this harm by using the Company’s own platform as a megaphone to disparage it,” said Twitter’s lawyers in their filing.
“Millions of Twitter shares trade daily under a cloud of Musk-created doubt. No public company of this size and scale has ever had to bear these uncertainties.”
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Twitter is asking the court to force Musk to purchase the company based on the agreed price of $54.20 per share despite him arguing that he wants the deal to be closed because the company refused to provide substantial information regarding bot accounts. The trial is scheduled for Tuesday, and Twitter also requested an expedited date as its lawyers are pushing for a four-day trial in September.
However, close sources said Musk requests that the trial starts no earlier than February. Both requests would be heard by Delaware Court of Chancery chancellor Kathaleen McCormick who is likely to grant Twitter’s request for a short trial. McCormick said she was diagnosed with coronavirus and agreed to hold a teleconference instead of delaying the hearing.
Elon Musk was on vacation Sunday in Mykonos, Greece, as Twitter filed the request to the court. Last week, he confirmed the birth of his twins with Neuralink exec Shivon Zilis.
He also wants to increase childcare benefits for the employees at his companies after the twins’ birth
“Kids are worth it if at all possible. I’m planning to increase childcare benefits at my companies significantly. Hopefully, other companies do same. Also, Musk Foundation plans to donate directly to families. Hopefully, details to be announced next month.”
— Elon Musk (@elonmusk) July 18, 2022
If Twitter wins its case, Musk may be able to refuse to sign the paperwork to acquire the company physically. The state also has the power to appoint an official, a “special master,” to speak on his behalf, but he could also be held in contempt, leading to either jail time or paying multiple fines.