elon musk files countersuit under seal vs twitter over us$44 billion deal

Elon Musk countersued Twitter Inc on Friday, escalating his legal fight against the social media company over his bid to walk away from the US$44 billion purchase, although the lawsuit was filed confidentially.

While the 164-page document was not publicly available, under court rules a redacted version could soon be made public.

Musk’s lawsuit was filed hours after Chancellor Kathaleen McCormick of the Delaware Court of Chancery ordered a five-day trial beginning on October 17 to determine if Musk can walk away from the deal.

Twitter did not immediately respond to a request for comment.

elon musk files countersuit under seal vs twitter over us$44 billion deal

Elon Musk’s Twitter account is seen on a smartphone in front of the Twitter logo. Photo: Reuters

Also on Friday, Musk was sued by a Twitter shareholder who asked the court to order the billionaire to close the deal, find that he breached his fiduciary duty to Twitter shareholders and award damages for losses he caused.

Musk owes a fiduciary duty to Twitter’s shareholders because of his 9.6 per cent stake in the company and because the takeover agreement gives him a veto of many of the company’s decisions, according to the lawsuit, which seeks class status. The lawsuit was filed by Luigi Crispo, who owns 5,500 Twitter shares, in the Court of Chancery.

Musk, the world’s richest person and chief executive of Tesla Inc, said on July 8 he was abandoning the takeover and blamed Twitter Inc for breaching the agreement by misrepresenting the number of fake accounts on its platform.

Twitter sued days later, calling the fake account claims a distraction and saying Musk was bound by the merger contract to close the deal at US$54.20 per share. The company’s shares ended on Friday at US$41.61, the highest close since Musk abandoned the deal.

McCormick fast-tracked the case to trial last week, saying she wanted to limit the potential harm to Twitter caused by the uncertainty of the deal.

Twitter has blamed the court fight for slumping revenue and causing chaos within the company.

The two sides had basically agreed to an October 17 trial, but were at odds over the limits of discovery, or access to internal documents and other evidence.

Musk accused Twitter this week of dragging its feet in response to his discovery requests, and Twitter accused him of seeking huge amounts of data that are irrelevant to the main issue in the case: whether Musk had violated the deal contract.

The chief judge in her order on Friday appeared to anticipate discovery disputes to come.

“This order does not resolve any specific discovery disputes, including the propriety of any requests for large data sets,” said McCormick.

Musk also faces a week-long trial in Wilmington, Delaware, beginning on October 24. A Tesla shareholder is seeking to void as corporate waste and unjust enrichment the CEO’s record-breaking US$56 billion pay package from the electric vehicle maker.

TECH NEWS RELATED

Fintech platform Scripbox makes strategic investment in Pune-based Wealth Managers

Online wealth management platform Scripbox has made a strategic investment in Pune-based wealth advisory platform Wealth Managers.Scripbox declined to comment on the size of the deal.This is expected to bolster its geographical presence, expand customer base and offer digital solutions to Wealth Managers’ clientele.Over the past six months, Scripbox has ...

View more: Fintech platform Scripbox makes strategic investment in Pune-based Wealth Managers

Russians Building a Satellite-Blinding Laser – An Expert Explains the Ominous Technology

A powerful enough laser beam could blind spy satellites. According to a recent report in The Space Review, Russia is building a new ground-based laser facility for interfering with satellites orbiting overhead. The basic idea is simple: flooding the optical sensors of other nations’ spy satellites with laser light ...

View more: Russians Building a Satellite-Blinding Laser – An Expert Explains the Ominous Technology

Podcast #688 – Intel & AMD Financials, Ryzen 7000 Date, be quiet! Pure Base 500 FX, Sonos, 0-Day Hacks + MORE!

Josh wanders back in for this 688 Attack Sub sized podcast. We explore another week of tech news, including about 17 straight minutes of Intel and AMD Q2 financial analysis from Josh. If that isn’t stimulating enough for you we also talk about upcoming CPU launches, a mandatory look ...

View more: Podcast #688 – Intel & AMD Financials, Ryzen 7000 Date, be quiet! Pure Base 500 FX, Sonos, 0-Day Hacks + MORE!

Samsung Galaxy Watch 5 Rumors: Will It Have Better Battery Life?

Samsung's new Watch might be revealed at the August Unpacked event.

View more: Samsung Galaxy Watch 5 Rumors: Will It Have Better Battery Life?

Apple Delays iPadOS 16 Software Update To Focus on iPhone 14

(Photo : Francis Hoang / Unsplash) Apple has decided to officially push back the iPadOS 16 release to prepare for the highly anticipated iPhone 14. But this move may cause additional problems for consumers and developers. Apple Pushes Back iPadOS 15 Apple Inc. is moving the launch of the ...

View more: Apple Delays iPadOS 16 Software Update To Focus on iPhone 14

Spotify Finally Fixes Its Stupid Play Button

Spotify For whatever reason, the big green “play” button at the top of Spotify playlists is actually a “shuffle” button. That’s why shuffle seems to turn itself on all the time. But Spotify will correct its most frustrating, unintuitive design choice by offering users a new button. That’s right; ...

View more: Spotify Finally Fixes Its Stupid Play Button

ISRO says rocket carrying small satellites placed them in wrong orbit, rendering them unusable

AgenciesThe Indian Space Research Organization has said its rocket carrying small satellites launched on Sunday placed them in the wrong orbit, rendering them unstable and thus, unusable, ISRO said in a statement on Sunday.The Small Satellite Launch Vehicle, a maiden attempt by ISRO to send lighter satellites into space, had ...

View more: ISRO says rocket carrying small satellites placed them in wrong orbit, rendering them unusable

Save up to 41% on Already-Affordable SoundPEATS Earbuds Today Only

Right now, Amazon is offering big discounts on some of our favorite entry-level earbuds on the market in 2022.

View more: Save up to 41% on Already-Affordable SoundPEATS Earbuds Today Only

Netflix releases: Everything coming and going the week of August 7

Apple may launch at least four new smart home products by early 2024

Hands-on photos and features of Samsung Galaxy Z Fold4 leaked

These $269 Noise Cancelling Sleep Earbuds Provide a Nearly Silent Slumber

People are saying this big Marvel plot hole might ruin the MCU

Lazarus hackers lure crypto-experts with Coinbase engineer job offers

US-Built 2023 Volkswagen ID.4 Gets An Affordable Price Tag

Galaxy Z Fold 4 and Galaxy Z Flip 4 appeared on live pictures

In UK, Migrants Convicted Of Crimes Will Be Required To Wear Smartwatches All The Time

Microsoft 365 phishing attacks abuse Snapchat, Amex open redirects

Channel Your Inner Mozart: The Best Music Theory Apps, Services, and Lessons

Phone Cleaning 2022: Here's How to Improve The Performance Of Your Smartphone

OTHER TECH NEWS

Top Car News Car News