- Elon Musk and Twitter’s legal teams squared off in court for the first time on Tuesday.
- Chancery Court granted Twitter its first request in its legal battle against Musk.
- The hearing addressed Twitter’s request to expedite the hearing.
The Delaware Chancery Court granted Twitter its first request in its legal battle against Elon Musk — a step that could set up the company for success.
Delaware Court of Chancery chancellor Kathaleen St. Jude McCormick granted Twitter’s request for a speedy trial during the first hearing on the case on Tuesday.
“The longer the merger transaction remains in limbo, the larger a cloud of uncertainty is cast over the company,” McCormick said on Tuesday.
Twitter has been pushing for a speedy trial and has filed a motion for a four-day trial in October. Meanwhile, Musk’s legal team has said it will require additional time for discovery and has pushed for a February trial date.
“This very public dispute harms Twitter with each passing day Musk is in breach. Musk amplifies this harm by using the Company’s own platform as a megaphone to disparage it,” Twitter said in a legal filing last week. “Millions of Twitter shares trade daily under a cloud of Musk-created doubt. No public company of this size and scale has ever had to bear these uncertainties.”
During the hearing, Twitter’s lawyer, William Savitt, accused Musk of attempting to “delay this trial to avoid a reckoning in hopes of wearing Twitter down, running down the clock and increasing his leverage.”
Experts have previously told Insider it would be in Twitter’s best interest to resolve the court battle as soon as possible. University of Michigan Ross Business School Professor Erik Gordon previously said Musk could drag the court battle on for years and could attempt to appeal the case if he loses.
Since Musk agreed to buy the company, Twitter’s stock has dropped about 40%. Experts told Insider that no matter the outcome of the court case, Twitter will face more lawsuits from shareholders in the coming months.
This is a developing story. Check back for more updates.
