Last Wednesday we had official confirmation that Twitter has brought Elon Musk to trial, and only two days later we learned that the judicial mechanism has already been set in motion, with a first hearing scheduled for next week. The objective of the same, with an expected duration of 90 minutes, is that Judge Kathaleen McCormick listen to the arguments related to Twitter’s request for a trial, which is expected to take place in September.
The purchase agreement between Twitter and Elon Musk was signed in Delaware, a jurisdiction usually chosen in the processes of purchases and mergers of large companies, and which, when analyzing its “history”, shows a clear predisposition to side with those who want to complete the processes against those who want to back down. This, per se, is already bad news for Elon Musk or, to be more exact, a bad sign.
And today we know, by Yahoo! Finance, which Kathaleen McCormick’s choice for the cause is also a bad sign for Elon Musk. Why? Due to his record in the Delaware Court of Chancery, where he has served as chancellor since last year, a short period but in which he has already faced other similar cases, in which he would have shown a clear tendency to complete operations in which one party has decided to back down.
In the opinion of Columbia law professor Eric Talley There are several points that play against Elon Musk. Among them, of course, he cites McCormick’s record in the Delaware chancery, but also the legal framework that governs that state, the unique configuration of the Delaware court itself and, although it may seem secondary, the attitude of Elon Musk during the last few months in connection with the purchase operation.
There seems to be more and more consensus regarding Elon Musk’s multiple weaknesses in this process and, although everything is possible until a sentence is handed down, most suggest that Musk will have to complete the purchase, but at the originally agreed value, yes. to a very close one, either assume the payment of an indemnity that could be well above the billion dollars stipulated in the contract. Be that as it may, and although there is still room for surprises, it seems that finally Elon Musk’s move with Twitter is going to be quite expensive.
