A judge halted the court case against Elon Musk over his purchase of Twitter, giving the parties until 5:00 pm on October 28 to complete the deal. This is in line with a petition by Musk's lawyer filed earlier.
Delaware Chancery Judge Kathaleen St. J. McCormick said if the transaction is not done by that time, she will set trial dates in November, according to an order issued Thursday, according to Fortune.
The ruling is a victory for Musk, who has asked the judge to stay Twitter's lawsuit against him. His lawyer said the social network “will not take yes for an answer” after he revived his bid to buy it. On October 3, it became known that Musk offered to complete the deal at a price of $54.20 per share, provided that the court “enter an immediate stay of the action” and “adjourn the trial and all other proceedings.” His lawyers said they were aiming to close the deal by October 28.
Twitter objected to Musk's request for a pause, saying he could and should close the deal next week. The buyer's lawyers said Twitter is resisting halting court proceedings based on the “theoretical possibility of a future failure to obtain the debt financing.”
“The obstacle to terminating this litigation is not, as defendants say, that Twitter is unwilling to take yes for an answer,” Twitter lawyers said in a court filing responding to Musk’s request to put the case on hold. “The obstacle is that Defendants still refuse to accept their contractual obligations.”
Musk’s lawyers had said that “Twitter cannot show any prejudice from a brief stay of this action to allow the parties to focus on closing,” according to the earlier filing. “In the event a closing does not occur, the litigation can promptly resume based on the then existing facts and whatever issues remain at the time.”
Both sides were preparing to meet in the courtroom on October 17.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.