Elon Musk Sues Twitter to Scrap Deal, Expose Fake Accounts
Legal team files countersuit against left-wing social media platform
Elon Musk is suing Twitter to force the company to scrap the $44 billion buyout deal while exposing the platform's fake account numbers.
Musk's legal team is filing a countersuit against Twitter to end the deal to buy the social media giant.
Musk's legal team wants the Delaware Court of Chancery to grant them extra time and ability to put together a case, according to the New York Post.
The team is building a case regarding fake accounts and "bots" on Twitter.
This comes after Twitter on Monday accused Musk of trying to "slow walk" the company's lawsuit.
Twitter is currently suing Musk to force him to complete his takeover.
The company is urging a September trial to ensure deal financing remains in place, according to a court filing.
"Millions of Twitter shares trade daily under a cloud of Musk-created doubt," the company wrote.
"No public company of this size and scale has ever had to bear these uncertainties."
It's suggested that the longer this stays in the courts, the more it could hurt Twitter stock prices and the easier it would make it for Musk to get a friendlier buyout price.
Twitter has sued Musk and asked a Delaware judge to order him to complete the merger at the agreed price of $54.20 per share.
The company said if Musk is ordered to close the deal, it could still take months of additional litigation to close the debt financing, which expires in April.
For that reason, Twitter asked the judge to reject Musk's proposal to hold the trial in February.
Musk, who is the world's richest person and chief executive of electric carmaker Telsa Inc, accused San Francisco-based Twitter of rushing the trial to obscure the truth about spam accounts and to "railroad" him into buying the company.
The first hearing in Twitter's original lawsuit will take place Tuesday in front of Delaware Court of Chancery Chancellor Kathaleen McCormick.
McCormick will likely rule on Twitter's request for an expedited trial.
According to the Post, Twitter's lawyers want the trial to start in September, while Musk's team wants it to begin no earlier than February 2023.
Musk's countersuit will also be heard by Chancellor McCormick.
On July 8, Musk said he was terminating the deal because Twitter violated the agreement by failing to respond to requests for information regarding fake or spam accounts on the platform, which is fundamental to its business performance.
The billionaire appeared to respond to the suit in a tweet on Tuesday evening, writing: "Oh the irony lol."
He seemed to be referring to the fact that he was initially aggressive in pursuing the deal over skepticism from Twitter's board, roles that have now reversed.