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In Win for Twitter in Its Suit Against Musk, Company Gets Expedited Trial

Ruth Singleton
Published Date:
Jul 19, 2022


In the first hearing in the dispute between Twitter and Elon Musk over his decision to back out of his agreement to purchase the company, the Delaware Chancery Court has granted Twitter’s request to hear the case on an expedited basis, Business Insider reported. Judge Kathleen St. Jude McCormick agreed Tuesday to a trial in October that will last for five days. Her decision was based on the "business risk" that Twitter now faces.

Musk agreed to buy Twitter for $44 billion in April. He is now is claiming that he terminated the merger agreement because Twitter misrepresented data about the number of bots on the site. Twitter claims his decision is nothing more than a case of "buyer's remorse" and that he should be forced to close the deal. Twitter's stock is now 20 percent below what it was when Musk agreed to acquire the company and take it private. 

Musk's team asked for the trial to begin early next year, CNN reported. "We're not opposing expedition full stop, we're not asking for years here," Musk lawyer Andrew Rossman said. "What we're offering instead, Your Honor, is an incredibly rapid and sensible schedule." 

In response, Judge McCormick, said that Musk's lawyers "underestimate the ability of this court ... to quickly process complex litigation."  

According to CNN, even with an expedited trial, the stakes for Twitter are high. The company was already struggling to grow its user base and advertising business before Musk made his purchase offer. Along with other tech companies, it is now pulling back on costs due to inflation and concerns about a recession. Twitter needs a quick resolution to the dispute with Musk in order to limit the uncertainty for its shareholders, employees and customers. Any repercussions for its business could be worsened by costly, prolonged litigation.  

While many legal experts say Twitter likely has the stronger legal case, some have said that the company may end up settling with Musk if the case starts to drag on, in an effort to reduce the disruption to its business.  

CNN also reported that while the hearing was originally scheduled to take place in-person, Judge McCormick sent a letter to the two parties on Monday alerting them that she tested positive for Covid-19 and would be moving the hearing to Zoom. 

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