The trial between Elon Musk and Twitter, which was set to start on October 17th, has been abruptly postponed.
In order to allow for the completion of their agreement for Musk to purchase Twitter at $54.20 per share, as the two sides agreed to on April 25th, Judge Kathaleen McCormick granted the Musk side’s request for a stay.
The two parties have been negotiating to close the deal, and earlier this week Musk submitted a letter claiming that he would still go through with the acquisition.
Musk’s change of heart and request for a stay, which was previously planned to take place today, are occurring just in time to postpone his deposition in the lawsuit, as my colleague Liz Lopatto noted in today’s This Week in Elon newsletter.
Despite the lawyers for Twitter objecting and pleading with the judge not to take Musk’s statements seriously, the stay was approved.
Kevin Shannon, the attorney for Twitter, wrote to McCormick on the eve of the trial, saying, “Now, Defendants declare they intend to close after all. They beg to avoid being held accountable on the basis of merits because they claim this time is different and that you can trust them.
According to Edward B. Micheletti of Musk’s legal team, “Twitter will not accept yes for an answer.” Musk’s lawyers emphasized that Twitter is the real culprit. Surprisingly, they have insisted on carrying out this litigation, irresponsibly jeopardizing the purchase and putting their stockholders’ interests at risk.
Twitter expressed concerns about Musk’s seriousness, citing his prior wavering on whether or not to purchase the company and accusations of fraud, saying that “Defendants have pursued increasingly implausible claims and over and over sought to delay trial on the merits to enforce the Merger Agreement.”
Additionally, Musk has not finalized preparations for the more than $12 billion in debt financing he is expected to obtain from banks who are assisting to put up money for the purchase, which raises doubts from the lawyers that he will be able to close the sale as promised.