The first hearing for Twitter’s lawsuit against Elon Musk has been set.
Kathaleen McCormick, the Delaware Court of Chancery ambassador, set a 90-minute hearing on Tuesday to hear arguments regarding a September trial for Twitter’s lawsuit against Musk for terminating his merger agreement, according to documents reviewed by Reuters.
“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, promising to use his best efforts to get the deal done,” the lawsuit reads. “Now, less than three months later, Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
TWITTER SUES ELON MUSK TO STICK WITH $44 BILLION ACQUISITION
Twitter filed its lawsuit against Musk on Tuesday, in which it alleged that Musk attempted to get out of his offer to pay $44 billion for the company due to the declining price of Tesla’s stock. The social platform’s legal team also noted that Musk had regularly disparaged the company and its staff on Twitter, making it appear that he did not hold them in high esteem despite his willingness to acquire the company.
Musk appears unaffected by Twitter’s legal threat. The billionaire made light of the lawsuit in a series of tweets on Monday, alleging that they will have to disclose their bot counts in court.
Several staff members at Twitter have also expressed concerns about how the deal has been handled to date, including claims that Twitter leadership has failed to inform staff about the legal proceedings and that they have failed to step up as leaders.
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If Twitter wins its court case against Musk, he will be forced to purchase its stock at $54.20 a share. If Musk succeeds, he will be released from his contractual obligations and will have to pay a $1 billion termination fee, as established in the agreement.
