Musk's lawyer representing him countersues Twitter: requests to expedite acquisition case deemed unreasonable, merely a smokescreen to cover up fake account issue

Regarding the Twitter accusation that Tesla founder Elon Musk did not comply with the acquisition agreement, Musk's legal representative has filed a motion with the court, emphasizing that Twitter's request to expedite the merger case is just to cover up the fake account data issue highlighted by Musk.

According to documents dated 7/8, Musk stated in a letter to Twitter's General Counsel Vijaya Gadde that Twitter has violated multiple terms of the acquisition agreement by failing to provide relevant data related to the transaction, as requested for legitimate business purposes, including an independent evaluation of fake/junk accounts, thereby breaching Sections 6.4 and 6.11 of the "Acquisition Agreement."

Twitter, on the other hand, accuses Musk of not honoring the acquisition commitments and attributes his suspension of the acquisition process to the drop in stock price, stating that he does not want to bear the costs of market downturn as per the agreement but rather shift them onto Twitter shareholders.

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It also seeks a court order for Musk to complete the acquisition at the agreed price of $54.2 per share and to make a judgment by September, as the acquisition agreement between Twitter and Musk is set to terminate on 10/25.

Accelerating Mergers Unreasonable

According to Reuters, Musk's lawyers have filed a motion with the court stating that the court should reject Twitter's "unreasonable demand" to expedite the trial of the acquisition case within two months:

After two months of delay and obfuscation, Twitter suddenly requested to speed up the acquisition process, which they did to conceal the truth behind the latest strategy of fake account data.

The lawyer stated that the issue of fake account data is the foundation of Twitter's valuation and requires a significant amount of time for investigation, requesting the court to reconsider the case after February 13 next year.

Previously, the financing plan provided by banks for Musk will expire in April next year, which means that if the trial is not completed in time, the Twitter acquisition will be officially canceled.

Twitter declined to comment on the latest motion filed by Musk's lawyers.

7/19 Hearing

Delaware Chief Judge Kathaleen McCormick, responsible for this case, will hold a four-day hearing starting on 7/19 to determine, during which Twitter will seek a court ruling for Musk to complete the acquisition by September this year.