Elon Musk Fires Back After Twitter Pushes for September Trial
While Twitter is hoping to take its case against Musk to trial in September, Musk’s representatives are seeking to delay a trial until next February.
Last week, Twitter officially sued Elon Musk in the Delaware Court of Chancery, after Musk announced that he planned to exit his agreement to purchase the company. Twitter is taking the position that Musk does not have the right to breach the merger agreement and is effectively seeking to hold him to the deal. The lawsuit was unlike most others, with numerous Musk tweets included as evidence, including one in which he tweeted an emoji of fecal matter at Twitter’s CEO.
Following the announcement of the suit, Musk's attorneys issued a response late last week.
Bloomberg News reported that while Twitter is hoping to take its case against Musk to trial in September, Musk’s representatives are seeking to delay a trial until next February. A hearing on the matter is scheduled to take place Tuesday.
Musk’s lawyers also filed a document Friday, which was obtained by the Washington Post.
“The core dispute over false and spam accounts is fundamental to Twitter’s value,” the filing said. “It is also extremely fact and expert intensive, requiring substantial time for discovery.”
“Musk was stunned to discover that Twitter’s process for identifying spam accounts relied on human reviewers … Musk quickly understood that management did not have a handle on the bot and spam issue.”
There was much skepticism about Musk’s claims.
Meanwhile, CNBC reported last week that Twitter’s board has revised its proxy filing with the Securities and Exchange Commission (SEC) and is urging its shareholders to approve the sale to Musk, despite the entrepreneur’s reluctance to go through with purchasing the company.
“Adoption of the merger agreement by our stockholders is the only remaining approval or regulatory condition to completing the merger under the merger agreement, and is an important and required step for our stockholders to receive the merger consideration,” Twitter’s filing said.
A “special meeting” of shareholders will take place at an undetermined date to approve the merger.
“At the special meeting, you will also be asked to consider and vote on a proposal to approve, on a non-binding, advisory basis, the compensation that will or may become payable by Twitter to its named executive officers in connection with the merger; and a proposal for the adjournment of the special meeting, from time to time, to a later date or dates, if necessary or appropriate, to solicit additional proxies if there are insufficient votes to adopt the merger agreement at the time of the special meeting,” the filing added.
Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.