Elon Musk has filed a countersuit against Twitter in an effort to back out of his $44 billion purchase agreement for the social media giant. According to the New York Post, Musk’s legal team is asking the Delaware Court of Chancery for more time and the opportunity to build a case about phony accounts and “bots” on Twitter.
According to a court filing, Twitter on Monday accused Musk of attempting to “slow walk” the company’s case intended to make him accountable for his takeover and demanded a September trial to ensure transaction financing is maintained.
According to others, the longer this case is pending in court, the more damage it could do to Twitter stock prices and the simpler it would be for Musk to negotiate a more favorable takeover price. Twitter has filed a lawsuit against Musk, requesting that a Delaware judge compel him to consummate the merger at the agreed-upon share price of $54.20.
Musk said that Twitter, based in San Francisco, hurried the trial to hide the facts about spam accounts and “railroad” him into purchasing the business. Tuesday, before Chancellor Kathaleen McCormick of the Delaware Court of Chancery, will be the first hearing in Twitter’s original lawsuit.