Elon Musk filed a counter-suit against Twitter on Friday, escalating his legal battle with the social media company over his abandonment of a $44 billion deal to acquire the site.
The 164-page lawsuit was filed under seal before the judge’s 5 p.m. deadline, so its contents were not immediately visible to the public. Under court rules, a partially revised version may be available next week.
the post I first reported Musk’s plans to the counter-suit, which was filed in Delaware Court.
“I have reviewed the counter-claims and state that the order in them in terms of my own actions and actions is true, and in so far as it relates to the actions and actions of anyone else, I believe they are true,” said one of the companions to the filing signed by Musk.
Twitter shares fell 0.3% on the news.
Twitter spokesperson Brian Polyakov declined to comment on the counterclaim.
JB Heaton, an investment researcher and former attorney for the company, told The Post that Musk’s anti-suit was likely filed under seal because it included information Twitter shared with Musk under a nondisclosure agreement or other restrictions.
“Heaton said it was almost certain that they included the facts they got under the expectation of confidentiality from Twitter.
Delaware District Court Judge Kathleen McCormick will likely have the parties agree on a partially revised version that could be released to the public within a week, according to Heaton.
The Wall Street Journal mentioned Musk’s countersuit includes a reference to a famous quote from Warren Buffett: “Only when the tide goes out do you discover who has been swimming naked.”
The quote is a clear reference to Musk’s accusation that Twitter hid a fake account issue, according to the magazine.
The news comes as Musk and Twitter prepare for an upcoming trial in the social networking site’s lawsuit against Kotb for reneging on the $44 billion takeover deal.
At a hearing last week, McCormick agreed to Twitter’s request for an expedited trial – And on Friday, she Finalizing five-day trial plans Starting October 17th.
Musk’s lawyers wanted the trial to begin no later than February 2023, arguing that his team needed more time to investigate fake accounts on the site.
“The longer the merger deal remains in limbo, the greater the cloud of uncertainty over the company,” McCormick said upon approval of the accelerated trial request on Twitter.
Twitter is seeking to force Musk to move forward with his agreement to buy the company for $54.20 per share, but the company’s shares were trading at $41.50 in after-market trading on Friday, indicating that investors are skeptical that the company will prevail.
This was said by many legal analysts Twitter has a strong argument against the world’s richest man, but Delaware courts may not be inclined to force Musk to take over a position he doesn’t want. Alternatively, the company may agree to a lower acquisition price or reach a settlement with Musk.
Musk initially said he withdrew from the deal on July 8, accusing Twitter of breaching the merger agreement by misleading him about the number of fake accounts on the site.
A lawsuit was filed against Twitter days laterDescribing the fake account as a distraction, he said Musk was bound by the merger contract to close the deal at the agreed-upon price.
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