By
Bhushan Akolkar
April 25th, 2024
The lawsuit filed by Twitter notably wanted an expedited hearing set at around 60 days from the filing date.
In light of the ongoing legal brawl between social media giant Twitter Inc (NYSE: TWTR) and Elon Musk, the CEO of the electric automaker, Tesla Inc (NASDAQ: TSLA), the former is asking its shareholders to ratify the buyup deal as the last step in satisfying the merger agreement.
This latest move was shown in a filing lodged with the United States Securities and Exchange Commission (SEC) filing on Friday with Twitter reminding the company’s shareholders that the agreed sales price of $54.20 comes off as a 38% premium to where the company’s shares were trading prior to Musk disclosing his initial stake.
“Adoption of the merger agreement by our stockholders is the only remaining approval or regulatory condition to completing the merger under the merger agreement, and is an important and required step for our stockholders to receive the merger consideration,” Twitter said in the updated filing with the SEC.
Recall that Twitter had dragged Elon Musk to court as the world’s richest man decided to pull out of the deal to buy the social media company. Musk had posited when he made the bid that he has huge plans for the company, and besides his own personal commitment, he has secured equity funding from several investors including Binance Exchange.
However, to achieve his long-term plans, he said he would need an accurate detail of spam bots and their prevalence on the app.
Since the agreement to acquire the company has been signed, Musk and Twitter have been having a back and forth with sharing the data on the fake accounts. With the Twitter board not forthcoming, Musk has since backed out of the deal and the social media company’s lawsuit alleged that Musk is acting in bad faith, and wants to court to rule that Musk and his camp completes the deal.
Court Filing Shows Differentials in Twitter and Elon Musk Trial Date Preference
The lawsuit filed by Twitter notably wanted an expedited hearing set at around 60 days from the filing date. As reported by CNBC, Elon Musk’s lawyers have asked the courts to reject the request for a speedy trial by Twitter, noting that the firm made a “sudden request for warp speed after two months of foot-dragging and obfuscation.”
The Musk camp echoed the fact that the legal approach being taken by Twitter is its “latest tactic to shroud the truth about spam accounts.”
Musk lawyers are requesting for a trial next that will be fixed for next year, arguing that “it would be an ‘extraordinary feat’ to try a complex busted deal case within even five to six months,” and they say “holding trial in February 2023 would balance the interests of the parties and the Court.”
It is not yet clear whose favor the court will rule in one of the most publicized legal brawls this year.