Elon Musk strikes yet again. It looks like the Musk vs Twitter saga is going to go on for quite a while with both sides coming up with new battle strategies. Twitter had marked its first win with the trial being speedtracked to October. However, sitting calmly during a chaotic time is not in the nature of Elon Musk, and the Tesla founder has filed a countersuit. The gravity of the situation rises to the next level with the countersuit that was filed on Friday. The lawsuit was filed confidentially. However, as we are aware, some news have the tendency to flow through the smallest of cracks.
Locking Horns
The countersuit was filed just hours after the Delaware court order which was in favor of Twitter. October 17 was decided to be the date for the five-day long trial which will finally put an end to the chaos and decide whether Musk can walk away from the $44 billion deal.
The countersuit was not the only development on Friday. A shareholder of Twitter filed a lawsuit against Musk, requesting the court to order the billionaire to close the deal. The main weapon used in the lawsuit against Musk was the breach of fiduciary duties to Twitter, thereby making Musk liable for the damages. Looks like the Tesla CEO has gotten himself into quite a tangle.Musk’s 9.6 percent stake in the company binds him under a fiduciary duty to shareholders of Twitter. Also, the takeover agreement grants him a veto over multiple company decisions. Luigi Crispo who owns 5,500 shares in Twitter is the one who filed the lawsuit.
The whole saga began on the 8th of July when Musk backed out of the $44 billion deal blaming Twitter for the lack of data concerning bot accounts. Twitter responded by suing the billionaire dismissing the bot account claims as a mere distraction. Although the trial was speedtracked to October so as to reduce the adverse effects the uncertainty might have on Twitter, both the parties locked horns yet again over the lack of internal document access and other evidence. While Musk was quick to accuse Twitter about delaying his discovery requests, Twitter countered by saying that the huge amounts of data Musk is asking for is completely irrelevant to the issue at hand. Looks like neither is in ready to bow their heads. Only time can tell who will finally emerge victorious in this dramatic battle.
