Twitter-Elon Musk to head for trial over buyout deal collapse

A Delaware judge ruled that Tesla CEO Elon Musk and social media giant Twitter will head to a five-day trial on October 17.

According to the order signed late Thursday by Chancellor Kathleen McCormick of the Delaware Court of Chancery, Musk must reveal by the end of Friday any legal claims he has against the company.

Blaming Twitter Inc for breaching the merger agreement by misrepresenting the number of fake accounts on its platform, Musk said he was walking away from the deal on July 8.

Callingthe claim fake, Twitter sued Musk in response highlighting that he was bound by the merger contract to close the deal at $54.20 per share.

Saying she wanted to limit the potential harm to Twitter caused by the uncertainty of the deal, McCormick fast-tracked the case to trial last week.

Causing chaos within the company, the trial also resulted in Twitter missing expectations with a revenue of $1.18 billion.

Both Musk and Twitter, who were at odds over the limits of discovery, had agreed to pay each other a $1 billion breakup fee if either was responsible for the deal collapsing.

Musk is also facing another lawsuit from a Tesla shareholder who sued him for unjust enrichment and the weeklong trial will begin on October 24 in Wilmington.

(With inputs from agencies)

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