Twitter has won the first battle against Elon Musk in court. Judge Jude McCormick has heard the arguments of both parties and has decided that the trial to resolve the dispute over the purchase of the technology company for 44,000 million dollars will take place in five days in October. The social network had applied to the Delaware Court of Equity for an expedited process alleging that each day of uncertainty is a blow to the company’s actions and performance. The tycoon’s lawyers, on the other hand, asked that the process be postponed until February 2023 so that the necessary analyzes could be carried out to determine the number of false and spam accounts on the platform.
The first preparatory session of the trial was carried out electronically because Judge McCormick has fallen ill with coronavirus. Twitter’s lawyers have assured before the togada that Elon Musk’s delaying efforts are an “attempted sabotage”. “He’s doing everything he can to take down Twitter,” said Bill Savitt, an attorney with the law firm of Watchell, Lipton, Rosen & Katz. “He is doing everything possible to create damage to the company and expose it. He does it to be able to escape from the contract that he promised to close”, added Savitt, who believes that the operation should be completed before the financing agreements with the banks expire in April of next year.
The social network requested last week that the process be carried out in September to reduce the impact of the soap opera on the value of the shares. The price of these, however, has stabilized and begins to rise in the face of the almost unanimous opinion that Twitter has a good chance of succeeding in its battle so that the businessman fulfills its offer to pay 54.20 dollars per share. The lawyers of the social network have affirmed that the lack of agreement harms the San Francisco company “every hour, every day.” This Tuesday, the bag took the announcement of the trial with optimism. Twitter shares rose almost 3%, boosted by the almost unanimous opinion of experts that the technology will prevail in the process.
The judge has agreed with the reasoning of the lawyers of the San Francisco company. “Typically, the longer one of these mergers sits in limbo, the more the cloud of uncertainty spreads over the company, increasing irreparable risk to the seller,” McCormick said.
Musk is vacationing on a yacht in Greece with Hollywood agent Ari Emanuel. Meanwhile, his legal team goes on the offensive. His lawyer, Andrew Rossman, of the Quinn Emmanuel law firm, has accused Twitter of procrastinating in delivering his information about fake accounts and spam. The Tesla and Space X businessman believes that these represent more than 20% of the platform and had made it a condition of the agreement that it be verified that they represent less than 5%. This number is important, according to Musk, because it helps him determine the number of monetizable users. The issue has been the tug of war between the parties. Twitter claims that it has made every effort to share the data with its buyer without violating its privacy policies by sharing users’ personal information. Musk’s team had asked to postpone the trial to analyze “a massive amount of information” and billions of interactions on Twitter.
Savitt, however, has tried to change the narrative of the trial. “This case is not about that. That is a fabricated matter”, the lawyer has used in the conference by Zoom. Savitt says that in the original agreement the company did not make any promises about the fake account metric and that the agreement did not depend on this. He made it clear that the company had informed the regulator, the SEC, that the amount could be higher than its estimates. Rossman responded that Twitter wants to bury the truth about this controversy and said that his client has the right to know the exact number as the company’s second largest shareholder.
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