Musk looks to delay Twitter trial following whistleblower claims

Aug 30 (Reuters) – Elon Musk is searching for to delay till November a trial over his intention to again out of a $44 billion deal to purchase Twitter Inc (TWTR.N) and amend his grievance towards the social media firm, in line with court docket filings, after a whistleblower offered him with contemporary ammunition.

The court docket filings got here after Musk’s lawyer earlier within the day despatched a contemporary letter to Twitter to incorporate a whistleblower grievance as another excuse to scrap the deal. learn extra

In July, the Tesla Inc (TSLA.O) CEO despatched his first termination letter to Twitter, accusing it of deceptive him over the variety of faux accounts on its platform.

Now, he says the issues transcend the bogus accounts, and embody knowledge safety and different considerations raised by the whistleblower, creating a brand new battle entrance with Twitter.

Final week, Peiter Zatko, Twitter’s former safety chief, mentioned in a grievance filed with U.S. regulators that Twitter prioritized person progress over decreasing spam and falsely claimed it had a strong safety plan. learn extra

Musk and Twitter have sued one another in Delaware state court docket and a five-day trial is scheduled to begin Oct. 17.

Musk on Tuesday requested the decide to let either side proceed briefing their instances via Nov. 10, adopted by a convention to debate what proof they’ll introduce at trial. Musk mentioned a trial may start later that month “topic to the court docket’s availability.” learn extra

The movement to amend his grievance was filed beneath seal in Delaware Chancery Courtroom.

Twitter needs the court docket to order Musk to shut the deal for $54.20 per share. Musk filed a countersuit, accusing Twitter of fraud.

Authorized specialists mentioned the whistleblower grievance launched uncertainty to Musk’s showdown with Twitter, relatively than dramatically reworking a case that company regulation specialists have mentioned favors Twitter. learn extra

“One door that continues to be unused by Musk is a federal securities fraud declare,” Eric Talley, a professor at Columbia Legislation College, mentioned.

In the meantime, Twitter on Tuesday requested the court docket to disclaim Musk’s request for a further pre-2022 doc, calling the movement a “maneuver to derail the trial schedule.”

Reporting by Ankur Banerjee in Bengaluru, Hyunjoo Jin in San Francisco and Jonathan Stempel in New York; Modifying by Shounak Dasgupta and Invoice Berkrot

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