Last week Twitter hired a prominent mergers and acquisitions law firm and sued Elon Musk to force him to complete his $44 billion buyout of the company.
Musk had pulled out of the deal a week earlier saying Twitter did not live up to their contractual obligations as laid out in the Merger Agreement, namely around the number of fake or spam accounts the company says are active on the site.
Now it looks like Musk will countersue Twitter to ensure the deal does get scrapped.
According to a source close to the case that spoke with The New York Post, Musk will file the countersuit in the coming days.
Through the lawsuit Musk will be pushing the Delaware Chancery Court to grant their request for the case to be heard no sooner than February 2023. The extra time is required to obtain more evidence on the number of fake or spam accounts.
Twitter is hoping for a short four-day case to be heard in September, a timeline which Musk’s legal team says is “an extremely rapid schedule for a case of this enormous magnitude.”
University Of Iowa law corporate and finance law professor Robert T. Miller expects the court to grant the speedy trial unless Musk is able to come up with new evidence or arguments to support why the deal should be scrapped.
Musk’s legal team will have to work quickly. Twitter will get their first hearing in their lawsuit on Tuesday where Delaware Court of Chancery chancellor Kathaleen McCormick will attend through Zoom after testing positive for COVID-19.
