Without an agreement, the trial initially scheduled for mid-October will take place in November, decided the American justice. The billionaire offered on Monday to honor his commitment, and regretted that the social network “insists on continuing the procedure”.
The judge in charge of litigation between Elon Musk and Twitter gave Thursday, October 6, until October 28 to the parties for the boss of Tesla to buy the social network. Otherwise, the trial originally scheduled for October 17 will take place in November.
A few hours earlier, the multi-billionaire’s lawyers had requested the suspension of the proceedings initiated to force their client to honor his commitment made in the spring to acquire the platform for 44 billion dollars. They assured to expect that the operation will be concluded: “around October 28”.
Elon Musk had forced the hand of the Californian group’s board of directors to buy it out in April, before unilaterally reneging on the agreement a few weeks later. On Monday, in a further about-face, he finally offered to complete the transaction at the initially agreed price, as long as he obtained the necessary funds, and that Twitter put an end to its lawsuits.
“Rogue”
But after months of public attacks and changes of heart from the whimsical entrepreneur, the company wanted hard and fast proof of his seriousness. Twitter’s lawyers had therefore opposed earlier Thursday the adjournment of the trial requested by the opposing party, calling this possibility “an invitation to more cunning and delay”.
Judge Kathaleen McCormick finally ruled: “The proceedings are suspended until October 28, 2022, at 5 p.m., to allow the parties to conclude the transaction. If it is not concluded [by this date and time], the parties should contact me by email to obtain dates for a trial in November. »
Since the beginning of the week, negotiations between the two parties had resumed, but they are stumbling over the condition of financing. In their motion, Elon Musk’s lawyers regret that Twitter “insists on continuing the procedure, endangering the transaction and playing with the interests of shareholders”.
“Twitter refuses to end its lawsuits due to the theoretical possibility of a future failure to complete funding,” they note. But “this failure did not take place at this stage” , they underline. “On the contrary”, the creditors indicated “to be ready to honor their obligations”, affirm the lawyers. “Twitter’s groundless speculation has been refuted by the banks themselves. »
They feel that their client “agreed to do” what the company asked. “And yet, Twitter refuses to accept this positive response. Incredibly, [the company] insists on continuing the procedure,” they protest.
“Huge waste”
But the bluebird group argued they had no reason to trust the richest man in the world. “On numerous occasions,” the Musk clan “failed to fulfill its obligation to do everything possible to complete the transaction,” replied Twitter’s lawyers.
“For months, [the opposing party] has advanced increasingly implausible accusations to delay the trial (…), accusations that appeared unfounded” during the preliminary hearings, they assured. “Now, on the eve of the trial, they say they want to conclude. (…) ‘Trust us they say, ‘we are serious this time”, mocked the social network.
Elon Musk’s lawyers argued that “continuing the process [was] not only a huge waste of the parties and court’s resources, it [was] going to undermine the parties’ ability to close the deal. “
“At this point, there are two possibilities,” they say. “The most likely thing is that the debt will be funded (…) and the shareholders will get their money much faster than if Twitter won the lawsuit, and won the appeal (…) a process that could take months”. The second outcome would be a funding failure, in which case “Twitter would have new elements to bring to its complaint”, argues the Musk clan.
