Twitter denounced before the courts that the billionaire Elon Musk is damaging his interests with each passing day and He reiterated that the trial between both parties should be held “as soon as possible” to avoid further damage.
In documents presented before the Court of Wilmington (Delaware, USA) that handles the case, the microblogging firm accused Musk of using tactics “calculated to complicate and obfuscate” the process and “amplify” the damage caused by using the social network itself as a megaphone to attack the company.
“Millions of shares of Twitter are traded on the market every day under a cloud of doubt created by Elon Musk. Never has a company of this size and scale been subject to these uncertainties”, pointed out the lawyers of the social network firm.
Tuesday’s hearing in the state of Delaware will include arguments on the pressure from Twitter to set the trial date in September, in order to limit the uncertainty that plagues the company.
“Questions have been raised about the future of Twitter, and they don’t want this to go on for a long time,” said Carl Tobias, a law professor at the University of Richmond.
In this regard, last Friday, Musk asked the commercial court to act without haste in which the legal battle opened by Twitter will be waged to force it to buy the company for the 44,000 million dollars they agreed.
Through his lawyers, the billionaire formally responded to a Twitter request for an “expedited” process to be resolved in a trial in September, arguing that there is no reason to “rush.”
Musk’s legal team insisted that the “dispute over fake and ‘spam’ accounts is fundamental to the value of Twitter,” argued that “substantial time” is needed for an investigation” and that it is “unnecessary” to carry a ” dizzying schedule.
In that sense, the billionaire claims a trial no earlier than February 13, 2023 and points out that the financing it has for the operation is valid until April of that year.
Kathaleen McCormick, the judge overseeing the case, has a reputation for not tolerating pointless arguments. She also has the distinction of having previously directed a reluctant buyer to complete a business merger.
The forced closure of the Twitter operation is a scenario that some analysts consider possible. “Wall Street and legal experts consider Twitter to have a ‘strong iron fist,’ heading into the Delaware court battle after months of this nightmare fiasco,” analyst Dan Ives wrote last week.
He also noted that the least likely options are for Musk to pay a $1 billion breakup fee and be able to walk away, or win his fake account argument outright.
The founder of Tesla notified the US stock market regulator a week ago of his intention to cancel the purchase of Twitter that both parties agreed to in April, arguing that the platform deceived him and did not give him the data he requested.
He was referring, above all, to data on the number of false accounts or “spam” (“bots”) present on the platform, which the company puts at around 5% but which he considers an underestimate.
But Twitter complied last Tuesday with its threat of a legal battle and denounced the businessman in the Delaware Court of Chancery, which has commercial disputes, to try to get a judge to order him to continue with the operation.
In his complaint, the company accused Musk of disqualifying it, altering its operations, reducing value for its shareholders and other “contract loopholes” that have tarnished its business.
At the end of April, Twitter’s board of directors accepted the acquisition offer by Musk for 44,000 million dollars, 54.20 dollars per share, which represented a notable premium over the then and current price, which is around USD 38. .
(With information from EFE and AFP)