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Twitter Wins Bid to Fast-Track Case Against Elon Musk

The social media platform has sued to hold Musk to his $44 billion takeover offer and a Delaware judge said it deserved a quick resolution of the deal’s uncertainty


Musk has sold $6.9bn in Tesla shares to cover the risk he is forced to take over Twitter.
In July Tesla founder Elon Musk admitted selling $6.9bn worth of shares in the EV maker in deals linked to his dispute on whether he can drop his takeover bid for Twitter. File photo: Reuters.

 

A US judge said she would fast-track the Twitter case against Elon Musk, setting the stage for a high-profile trial in October.

The social media platform has sued to hold Musk to his $44-billion takeover offer and a Delaware judge said it deserved a quick resolution of the deal’s uncertainty.

The ruling is a blow to Musk, who pushed for a trial in February 2023 to allow for an extensive investigation into his claims that Twitter has misrepresented the number of fake or spam accounts on its platform.

The question of whether Twitter’s user numbers are inflated is core to his contention that he can walk away from the deal.

The company, which had requested a September trial, says the issue is a distraction and deal terms require Musk to pay up.

Twitter had argued that delaying the trial into the next year could threaten deal financing.

Kathaleen McCormick, chancellor of the Court of Chancery in Delaware, said on Tuesday that the company deserved a swift decision on its claims.

“The reality is delay threatens irreparable harm to the sellers,” she said, referring to Twitter.

McCormick asked the parties to work out the schedule for the trial, which she said would last five days.

Twitter shares were up 3.4% at $39.71 on Tuesday afternoon. An attorney for Musk did not respond to a request for comment.

 

  • Reuters, with additional editing by George Russell

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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