Elon Musk filed his response to legal queries presented by Twitter regarding the cancellation of his purchase of the social media platform and a countersuit against Twitter’s initial lawsuit.
The billionaire filed the 146-page countersuit under seal minutes before the 5 p.m. deadline, according to the New York Post. The contents are currently not visible to the public, but a redacted version may be released in the future. The filing arrives the same day that the Delaware Court of Chancery set the dates for Twitter and Musk’s trial.
COURT ANNOUNCES DATE FOR TWITTER VS MUSK TRIAL
“I have reviewed the counterclaims and declare that the matter contained therein insofar as it concerns my acts and deeds is true, and insofar as it relates to the acts and deeds of any other person, I believe it to be true,” reads an accompanying filing signed by Musk.
While Musk’s legal team argued that a full trial in early 2023 was necessary because of the need to analyze Twitter’s claims regarding spam bots, the judge ruled in favor of an expedited trial to minimize adverse effects on the company.
Musk terminated his agreement to acquire Twitter on July 8, claiming that Twitter had lied about the number of spam bots on its platform. Twitter promptly responded by filing a lawsuit against Musk on July 12, hoping to force him to uphold the agreement.
If Twitter wins its court case against Musk, he will be forced to purchase its stock at $54.20 a share and turn the company private. If Musk succeeds, he will be released from his contractual obligations and will only have to pay a $1 billion termination fee, as established in the agreement. A settlement is possible between the two parties but would require additional negotiations.
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Twitter experienced a 1% loss in revenue in part due to the uncertainty caused by Musk’s approach to his April announcement, when he claimed he would purchase Twitter for $44 billion.
The platform has continued to move forward as though the agreement will be upheld. The company said in a Securities and Exchange Commission filing that it intends to hold a special meeting on Sept. 13 to encourage shareholders to vote in favor of Musk’s acquisition of Twitter.
