Delaware court denies Musk request to delay Twitter trial but approves request to add whistleblower claims

This illustration photograph taken on August 5, 2022 reveals a cellphone displaying a photograph of Elon Musk positioned on a pc monitor stuffed with Twitter logos in Washington, DC.

Samuel Corum | AFP | Getty Images

A Delaware court denied Elon Musk’s request to delay the trial over his try to abandon a $44 billion deal to purchase Twitter, in accordance to a brand new submitting launched on Wednesday.

But the billionaire Tesla CEO shall be allowed to add claims from a Twitter whistleblower to his countersuit, Chancellor Kathaleen McCormick dominated.

The trial is anticipated to start on October 17, sooner than the mid-November date Musk’s crew requested in its newest push.

“I previously rejected Defendants’ arguments in response to Twitter’s motion to expedite, making clear that the longer the delay until trial, the greater the risk of irreparable harm to Twitter,” McCormick wrote. “I am convinced that even four weeks’ delay would risk further harm to Twitter too great to justify.”

Still, McCormick stated Musk’s request to amend his counterclaim clears the comparatively “low bar” of the court’s guidelines for doing so. Musk’s legal professionals requested to add claims associated to the whistleblower criticism lately made public by Twitter’s former head of safety, Peiter “Mudge” Zatko. Musk’s crew argued the criticism, which detailed what Zatko alleged had been egregious safety failings by the corporate, would present Twitter breached its phrases of the merger settlement if true.

Shortly after Zatko’s allegations grew to become public, Twitter CEO Parag Agrawal stated in a memo to workers first reported by CNN that whereas they had been nonetheless reviewing the criticism, it “is a false narrative that is riddled with inconsistencies and inaccuracies, and presented without important context.”  

Musk initially stated he desires to exit the deal as a result of he is acquired inadequate reassurance from Twitter concerning the share of its monetizable customers which can be truly spam accounts.

McCormick stated Musk’s crew could be entitled to solely “incremental discovery” based mostly on the brand new allegations, together with “targeted document discovery and minimal additional experts and fact witnesses.”

“We are hopeful that winning the motion to amend takes us one step closer to the truth coming out in that courtroom,” Musk lawyer Alex Spiro of Quinn Emanuel stated in a press release.

Twitter didn’t instantly reply to a request for remark.

WATCH: A timeline of the Elon Musk-Twitter takeover saga


Please enter your comment!
Please enter your name here

Popular Posts

Nike (NKE) earnings Q1 2023

A lady outlets for footwear within the Nike Factory Store on the Outlet Shoppes at El Paso, in El Paso, Texas on November 26,...

What’s behind the bounce and Club stocks in the news

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key...

How to get a Google Stadia refund for games and hardware

Such is the downstream impact of gaming’s latest pivot away from bodily media: Google is shutting down Stadia, its beleaguered game-streaming platform,...

Apple VP leaves company after making jokes in viral TikTok video

An aerial view of Apple Park is seen in Cupertino, California, United States on October 28, 2021.Tayfun Coskun | Anadolu Agency | Getty ImagesApple's...