Elon Musk plans to countersue Twitter over his $44 billion bid of the platform.
Elon Musk lost a fight to delay Twitter’s lawsuit against him as a Delaware judge on Tuesday set an October trial, citing the “cloud of uncertainty†over the social media company after the billionaire backed out of a deal to buy it.
“Delay threatens irreparable harm,†said Chancellor Kathaleen St. Jude McCormick, the head judge of Delaware’s Court of Chancery, which handles many high-profile business disputes. “The longer the delay, the greater the risk.â€
Twitter had asked for an expedited trial in September, while Musk’s team called for waiting until early next year because of the complexity of the case. McCormick said Musk’s team underestimated the Delaware court’s ability to “quickly process complex litigation.â€
Twitter is trying to force the billionaire to make good on his April promise to buy the social media giant for $44 billion — and the company wants it to happen quickly because it says the ongoing dispute is harming its business.
People are also reading…
Musk, the world’s richest man, pledged to pay $54.20 a share for Twitter, but now wants to back out of the agreement.
“It’s attempted sabotage. He’s doing his best to run Twitter down,†said attorney William Savitt, representing Twitter in Delaware’s Court of Chancery before the court’s Chancellor Kathaleen St. Jude McCormick. The hearing was held virtually after McCormick said she tested positive for COVID-19.
Musk has claimed the company has failed to provide adequate information about the number of fake, or “spam bot,†Twitter accounts, and that it has breached its obligations under the deal by firing top managers and laying off a significant number of employees.
Savitt said the contested merger agreement and Musk’s tweets disparaging the company were inflicting harm on the business and questioned Musk’s request for a delayed trial, asking “whether the real plan is to run out the clock.â€
“He’s banking on wriggling out of the deal he signed,†Savitt said.
But the idea the Tesla CEO is trying to damage Twitter is “preposterous. He has no interest in damaging the company,†said Musk's attorney Andrew Rossman, noting he is Twitter’s second largest shareholder with a far larger stake than the entire board.
Savitt emphasized the importance of an expedited trial starting in September for Twitter to be able to make important business decisions affecting everything from employee retention to relationships with suppliers and customers.
Rossman said more time is needed because it is “one of the largest take-private deals in history†involving a “company that has a massive amount of data that has to be analyzed. Billions of actions on their platform have to be analyzed.â€
Photos: Elon Musk through the years

FILE - In this Oct. 20, 2000 file photo, PayPal Chief Executive Officer Peter Thiel, left, and founder Elon Musk, right, pose with the PayPal logo at corporate headquarters in Palo Alto, Calif. (AP Photo/Paul Sakuma, File)

FILE - In this Dec. 9, 2008 file photo, Tesla Motors CEO Elon Musk stands in front a Tesla sports car at a Tesla showroom in Menlo Park, Calif. (AP Photo/Paul Sakuma, file)

FILE - In this March 26, 2009 file photo, Tesla Motors CEO, Chairman and Product Architect Elon Musk speaks at the unveiling of the Tesla Model S all-electric 5-door sedan, in Hawthorne, Calif., Thursday, March 26, 2009. (AP Photo/Reed Saxon, File)

In this July 21, 2009 photo, shows Tesla CEO Elon Musk talking about the lawsuit at Tesla headquarters in San Carlos, Calif., Tuesday, July 21, 2009. (AP Photo/Paul Sakuma)

In this Tuesday, July 21, 2009 photo, Tesla CEO Elon Musk poses at Tesla headquarters in San Carlos, Calif. (AP Photo/Paul Sakuma)

President Barack Obama walks to look at the Flacon 9 launch vehicle with SpaceX CEO Elon Musk at Kennedy Space Center Thursday, April 15, 2010.(AP Photo/Alex Brandon)

Calif. Gov., Arnold Schwarzenegger, right, Toyota CEO Akio Toyoda, left, and Tesla CEO Elon Musk, center, at Tesla headquarters in Palo Alto, Calif., Thursday, May 20, 2010. Tesla and Toyota officials announce partnership. (AP Photo/Paul Sakuma)

Elon Musk, CEO of Tesla Motors, poses with a Tesla car in front of Nasdaq following the electric automaker’s initial public offering, Tuesday, June, 29, 2010, in New York. The company plans to trade on the Nasdaq stock exchange under the ticker "TSLA." (AP Photo/Mark Lennihan)

Elon Musk, center, CEO of Tesla Motors, raises his hand at the Nasdaq opening bell to celebrate the electric automaker’s initial public offering, Tuesday, June, 29, 2010 in New York. (AP Photo/Mark Lennihan)

Elon Musk, co-founder, chief executive and product architect of Tesla Motors, poses at the premiere of the documentary film "Revenge of the Electric Car," Friday, Oct. 21, 2011, at Tesla Motors in Los Angeles. The film is director Chris Paine's follow-up to his 2006 documentary, "Who Killed the Electric Car?" (AP Photo/Chris Pizzello)

SpaceX CEO and Chief Designer Elon Musk walks in a procession after delivering the commencement speech for Caltech graduates in Pasadena, Calif. Friday, June 15, 2012. (AP Photo/Damian Dovarganes)

SpaceX CEO Elon Musk gives the opening keynote at the SXSW Interactive Festival on Saturday, March 9, 2013 in Austin, Texas. (AP Photo/Jack Plunkett)

FILE - In this May 29, 2014 file photo, Elon Musk, CEO and CTO of SpaceX, introduces the SpaceX Dragon V2 spaceship at the SpaceX headquarters in Hawthorne, Calif. (AP Photo/Jae C. Hong, File)

Elon Musk, CEO of Tesla Motors Inc., introduces the Model X car at the company's headquarters Tuesday, Sept. 29, 2015, in Fremont, Calif. Musk said the Model X sets a new bar for automotive engineering, with unique features like rear falcon-wing doors, which open upward, and a driver's door that opens on approach and closes itself when the driver is inside. (AP Photo/Marcio Jose Sanchez)

Elon Musk, CEO & Chief Product Architect of Tesla Moters, attends the premiere of "Racing Extinction" during the 2015 Sundance Film Festival on Saturday, Jan. 24, 2015, in Park City, Utah. (Photo by Arthur Mola/Invision/AP)

SpaceX founder Elon Musk speaks during the 67th International Astronautical Congress in Guadalajara, Mexico, Tuesday, Sept. 27, 2016. In a receptive audience full of space buffs, Musk said he envisions 1,000 passenger ships flying en masse to Mars, 'Battlestar Galactica' style. He calls it the Mars Colonial fleet, and he says it could become reality within a century. Musk's goal is to establish a full-fledged city on Mars and thereby make humans a multi-planetary species. (AP Photo/Refugio Ruiz)

President Donald Trump talks with Tesla and SpaceX CEO Elon Musk, center, and White House chief strategist Steve Bannon during a meeting with business leaders in the State Dining Room of the White House in Washington, Friday, Feb. 3, 2017. (AP Photo/Evan Vucci)

Grimes, left, and Elon Musk attend The Metropolitan Museum of Art's Costume Institute benefit gala celebrating the opening of the Heavenly Bodies: Fashion and the Catholic Imagination exhibition on Monday, May 7, 2018, in New York. (Photo by Charles Sykes/Invision/AP)

SpaceX founder and chief executive Elon Musk speaks after announcing Japanese billionaire Yusaku Maezawa as the first private passenger on a trip around the moon, Monday, Sept. 17, 2018, in Hawthorne, Calif. (AP Photo/Chris Carlson)

Elon Musk, co-founder and chief executive officer of Tesla Inc., speaks during an unveiling event for the Boring Co. Hawthorne test tunnel in Hawthorne, Calif., on Tuesday, Dec. 18, 2018. Musk has unveiled his underground transportation tunnel, allowing invited guests to take some of the first rides ever on the tech entrepreneur's solution to "soul-destroying traffic." (Robyn Beck/Pool Photo via AP)

Tesla CEO Elon Musk jokingly motions to kick before introducing the Model Y at Tesla's design studio Thursday, March 14, 2019, in Hawthorne, Calif. The Model Y may be Tesla's most important product yet as it attempts to expand into the mainstream and generate enough cash to repay massive debts that threaten to topple the Palo Alto, Calif., company. (AP Photo/Jae C. Hong)