the judge adjourns the trial for the parties to conclude the transaction

the judge adjourns the trial for the parties to conclude the transaction

The judge in charge of litigation between Twitter and Elon Musk adjourned the procedure on Thursday, October 6 and gave until October 28 to both parties for the boss of Tesla to buy the social network, failing which the trial initially scheduled for in ten days will have place in November.

A few hours earlier, the multi-billionaire’s lawyers had asked for the interruption of the lawsuits initiated by Twitter to force their client to honor the acquisition agreement. They said they expect the deal to go through “around October 28”.

Elon Musk had forced the hand of the board of directors of the Californian group in April to buy it back, against 44 billion dollars, before unilaterally reconsidering his commitment a few weeks later. On Monday, October 3, in another about-face, he finally offered to complete the transaction at the price initially agreed upon, as long as he obtained the necessary funds and that Twitter ended its lawsuits.

End of the advantage for Twitter

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 proposal “an invitation to more cunning and delay”.

Judge Kathaleen McCormick finally ruled: “The procedure is 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 e-mail to obtain dates for a trial in November. »

A move that took many observers by surprise, as Twitter seemed to have the upper hand so far. The law of Delaware, where this type of conflict is usually settled, promotes the respect of contracts.

Funding condition

Negotiations between the two parties resumed at the beginning of the week, but they are stumbling over the financing condition. In their motion, Elon Musk’s lawyers note that “Twitter refuses to end lawsuit due to theoretical possibility of future failure to complete funding”. But “this failure has not occurred at this stage”they point out. ” On the contrary “the creditors indicated “be prepared to honor their obligations”say the lawyers. “Twitter’s groundless speculation has been refuted by the banks themselves. »

They believe that their client “agreed to do” what the company demanded. “And yet, Twitter refuses to accept this positive response. Incredibly, (the company) insists on continuing the procedure, endangering the transaction and playing with the interests of the shareholders”.

The group with the blue bird, for its part, argued that it had no reason to trust the richest man in the world. ” At many times “the Musk clan “did not comply with its obligation to use its best endeavors to complete the transaction”replied Twitter’s lawyers.