Elon Musk wants to Delay Twitter Trial after Whistleblower Allegations 2022
- Tech News
- August 31, 2022
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Elon Musk seeks trial delay as he looks to pull $44 billion from Twitter Inc . acquisition.
Elon Musk is seeking to delay his trial until November after a whistleblower gave him new ammunition, according to court documents, as he plans to step back from the $44 billion takeover of Twitter Inc and review his views on the social media company’s complaint.
Earlier in the day, Musk’s lawyers sent a new letter to Twitter containing the whistleblower’s complaint, which the court provided as another reason to cancel the deal.
In July, the Tesla CEO sent Twitter his first letter of termination, accusing Twitter of misleading him about the number of fake accounts on its platform.
Now, he says, the issues go beyond fake accounts to include data security and other issues raised by whistleblowers, creating a new front with Twitter.
Last week, Twitter’s former chief of security, Peter Zatko, said in a complaint filed with US regulators that Twitter prioritized user growth over reducing spam and falsely claimed to have a robust security program.
Musk and Twitter are suing each other in a Delaware court, and a five-day trial is set to begin on October 17.
Tesla CEO Elon Musk attends the groundbreaking ceremony for Tesla’s Shanghai Gigafactory on January 7, 2019, in Shanghai, China.
On Tuesday, Musk asked the judge to give the parties until November 10 to continue briefing their cases, followed by a meeting to discuss the evidence they can present at trial. Musk said the trial could begin later that month “depending on the availability of the court.”
A motion to amend his complaint was sealed in Delaware Chancery Court.
Twitter wants the court to order Musk to close the deal at $54.20 per share. Musk filed a counterclaim alleging fraud on Twitter.
Legal experts say the whistleblower complaint has created uncertainty in Musk’s confrontation with Twitter, rather than dramatically changing the case in what corporate law experts say is in Twitter’s favor.
“One of the doors that Musk has not yet used is federal securities fraud claims,” said Eric Tully, a professor at Columbia Law School.
Meanwhile, Twitter on Tuesday asked the court to reject Musk’s request for additional pre-2022 documents, calling the proposal a “tactic to undermine the trial plan.”
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