Tech UPTechnologyTwitter Case Could Strip Musk of His Tesla Stock

Twitter Case Could Strip Musk of His Tesla Stock

After the date on which it will start was made public, the businessman countersued the company, intensifying the case after it failed to comply with the acquisition of the social network for 44,000 million dollars.

Musk asked the court that the lawsuit not be public, but no details were shared about why he requested the confidentiality of the details, since the CEO of Tesla himself has been a critic of the company and its operation.

According to The Wall Street Journal, the reason why he countersued the platform is already known to those familiar with the case: he alleges that Twitter did not give him the number of false accounts on the social network.

The same US media mentioned that it is “likely” that another of the reasons why Musk filed a legal appeal against Twitter is that it “changed” the number of monetizable daily active users.

On Friday, Delaware Chancery Court Judge Kathaleen McCormick set the start of the trial between the company and Musk on October 17 and is expected to last five days.

Musk’s lawyers tried to delay the start of the process until February of next year, in order to have a better opportunity and time to build the case, but Twitter intends to resolve the situation as soon as possible, because “the time is money”, according to his perspective.

In mid-July, the company filed the lawsuit against Musk in a Delaware state court to force him to commit to his offer to buy the company.

“Musk apparently believes that he, unlike any other party subject to Delaware contract law, is free to change his mind, wreck the company, disrupt its operations, destroy shareholder value,” the company said in a statement. present the case.

What could be the consequences for Musk after the trial?

The trial will take place in Delaware because the majority of companies listed on the United States stock exchange are represented in this state, which helps to act more quickly.

According to Robert Miller, who is a law professor in addition to having experience in acquisition cases and law related to the Delaware chancery court, the billionaire has potential risks if he does not comply with the purchase agreement, such as losing the power of Tesla.

And it is that the specialist explained that the powers of the court can range from formally declaring the businessman “in contempt” or even taking control of his shares in his electric car company, where most of his wealth is concentrated.

He also explained that the court can order Musk to acquire Twitter for the $44 billion or other approved amount, as well as force him to pay an additional fine.

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