Elon Musk announced he is filing a countersuit against Twitter in an attempt to end his $44billion deal to buy the social media company. The countersuit came in response to Twitter accusing Musk of trying to stall the company’s lawsuit by asking for a delay in court proceedings. Twitter is asking the court for a September trial citing Musk’s funding terms as a concern should there be a delay.
Chancellor Kathleen McCormick will hear both cases and likely rule on Twitter’s request for an expedited trial. According to the New York Post, Musk’s team is asking for time to gather information and would like to start the trial no earlier than February 2023. In contrast, Twitter’s legal team would like to begin legal proceedings in September.
On July 8, Musk said he was terminating the deal because Twitter failed to respond to requests for information regarding fake accounts, violating the purchase agreement’s terms. On July 11, he posted a tweet mocking the company for trying to force him to complete the sale after initially trying to prevent him from the purchase.
— Elon Musk (@elonmusk) July 11, 2022
Twitter is to argue that Musk disrupted their business, first wanting to purchase it and then attempting to back out of the agreement. Their lawsuit says, ‘Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he – unlike every other party subject to Delaware contract law – is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.’
According to the New York Times, Twitter’s General Counsel Sean Edgett gave Twitter employees an update in a memo,
‘We have also filed a motion for an expedited trial alongside the complaint, asking for the case to be heard in September, as it is critically important for this matter to be resolved quickly,’
‘At this point we anticipate the next step in the process will be for the court to set a schedule for the case,’ he added.
Musk has not contained his cynicism or humor, responding with “Oh the Irony” in a follow-up tweet.
Oh the irony lol
— Elon Musk (@elonmusk) July 12, 2022