The Twitter takeover saga has taken a new dimension after Elon Musk filed a counter lawsuit against the micro-blogging firm. According to report, the billionaire launched the bid in an attempt to force his way out of the deal.
As revealed, the details of the lawsuit are unknown at the moment. Elon Musk filed it confidentially, but report has it that it’s a 164-page paper. However, court stipulations could make the simplified version available to the general public soon.
Furthermore, the lawsuit occurred hours after Chancellor Kathaleen McCormick of the Delaware Court of Chancery dealt a blow to Musk’s initial attempt to shun the takeover. Recall that Binbits reported how Chancellor Kathaleen McCormick ruled against Musk’s attempt to drag the case till next year.
Accordingly, McCormick stated that the trial should commence by October 17 this year, running for five days. According to McCormick, allowing the lawsuit to drag will cause more damage to the firm. So, she ruled that it’s essential to fast-track the process and resolve the issue as soon as possible.
Also, a Twitter shareholder identified as Luigi Crispo sued Musk seeking that the court should compel the Tesla boss to close the deal. The shareholder argued that Musk violated his fiduciary obligations to Twitter shareholders. Consequently, the Shareholder is pushing for compensation from Elon Musk.
As stated, the billionaire owes a fiduciary obligation to the other stakeholders due to his 9.6% stake in the firm. This is because the takeover arrangement entrusts him the power to veto some of the firm’s decisions.
How Elon Musk and Twitter Lawsuit Is Taking Shape
Meanwhile, Musk and Twitter are at loggerheads after the Tesla CEO announced his intention to walk out of the deal. Elon Musk accused Twitter of submitting misleading data about the number of fake accounts on the platform. Subsequently, incurring a lawsuit from Twitter claiming Musk is only trying to cause a distraction. Twitter argued that a merger agreement binds the Billionaire to complete the takeover at $54.20 per share.
The takeover has generated a series of controversies ever since its report first emanated. Ranging from a lawsuit by a Twitter stakeholder to an investigation by regulators. The takeover hasn’t gone as intended for every party involved. Currently, Twitter is yet to respond to media calls on its position about the counter-lawsuit by Elon Musk.