Elon Musk’s first court defeat against Twitter appears to be possibly the world’s richest man’s first major defeat in a business case.
If you follow the news about Elon Musk and the companies he owns, you know that some time ago Elon Musk bought Twitter for 44 billion dollars.
After some time, he regretted his action and did not comply with the contract, which led to a lawsuit between the shareholders of this social media and Elon Musk. It seems that this is the first time that this American entrepreneur has failed in a field and it remains to be seen what will happen in the future.
Read more: The growth of Tesla shares after Elon Musk’s withdrawal from the purchase of Twitter; The consolations became hopeful again
The story of Elon Musk’s failure in the first court
The story is that Elon Musk is delaying the payment of 44 billion dollars that he contracted to buy Twitter and refuses to pay it every time. During this time, this social platform has suffered losses that have finally led to a lawsuit between them and Elon Musk. This trial is ongoing in one of the states of Delaware and is led by Kathleen St. J. McCormick.
After Twitter executives sued Musk, he asked the judge to adjourn the trial until two weeks later in February, which was denied by the judge and the trial was set for the fifth day of the fall.
After announcing the purchase of Twitter by Musk, the value of shares of this social platform increased several times. According to the managers of Twitter, after Musk’s withdrawal from this contract, the stock value suddenly fell and the Twitter company suffered huge losses, for which Elon Musk is responsible. Many experts who were in the course of this trial also considered Elon Musk’s chances of winning to be very low.
After hearing the arguments and evidence presented by Musk’s lawyers, the judge did not find them convincing and stated that Musk and his team believe that the court is unable to speed up the court process and do not know what the Wilmington court is capable of.
According to Judge McCormick, by creating an atmosphere, Musk is trying to make people distrust this social platform. Then the lawyers of the parties gave speeches. During the Twitter attorneys’ presentation, McCormick didn’t ask them any questions, but he did address Musk’s lawyer when he insulted his colleague.
The judge emphasized that many cases are concluded quickly, but Musk’s lawyer had a different opinion and said that he had a case that took a year to reach a conclusion. A lot of things were done late.
Shares of Twitter rose 5.4% after Elon Musk’s first court defeat, and were up another 2.4% by evening to $39.32 a share. But when Elon Musk announced in a tweet that he was withdrawing from the purchase of Twitter, the value of each share fell by 22%.
At the same time, Twitter’s lawyers claimed they only needed four days to prove that Musk had to live up to his agreement. After filing a lawsuit by Twitter’s lawyers, it seems that Elon Musk’s defeat in the first court against this social media has been achieved and he is obliged to fulfill his obligations.
What do you think about Elon Musk’s defeat in the first trial against Twitter? Share your thoughts with Tekrato in the comments section Technology News Follow with us.