Twitter has accused Elon Musk of “attempted sabotage” of the social media company as it called on a judge to fast-track its trial against the billionaire entrepreneur to prevent further damage to its business.
Lawyers for the social platform told Chancellor Kathaleen McCormick of the Delaware Court of Chancery that continued uncertainty over the future of the $44bn deal inflicts harm on Twitter “every hour of every day” and urged the judge to begin the trial in mid-September.
On July 8, Musk announced he was backing out of the deal to buy Twitter for $54.20 a share, alleging the company had breached the merger agreement by not sharing sufficient information on fake accounts and misleading regulators over the matter.
Twitter is now suing Musk in a bid to force him to complete the acquisition, accusing him of repeatedly breaching the terms of the merger agreement and trying to back out because tech markets have dropped since the deal was first struck in April.
In the first showdown in court between the Silicon Valley company and the world’s richest man on Tuesday, Twitter pushed for an expedited four-day trial. The social media group is arguing that Musk is hurting the business by goading it online and also disrupting operations, for example by refusing to give the green light to its employee retention plans.
“It’s attempted sabotage,” Bill Savitt of Wachtell, Lipton, Rosen & Katz, a lawyer for Twitter, said during the hearing. “He is doing his best to run Twitter down. He’s doing his best to create jeopardy for Twitter, is doing his best to create exposure for Twitter, and he’s doing that as a way to try to get out of the contract he promised to consummate.”
Musk has suggested a trial start in February at the earliest, according to a court filing from his lawyers on Friday, arguing that the debate over Twitter’s fake accounts required lengthier investigation and “substantial time for discovery”. Twitter is seeking a “warp speed” trial, his lawyers said.
Analysts have speculated that Musk may have buyer’s remorse given the rout in tech stocks since he first agreed to buy the company in April for $54.20. Its share price now stands at $39.07. The two parties could potentially renegotiate a deal at a lower price or agree a settlement.
