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Elon Musk and Twitter have yet to finalize agreement to end litigation: report


Elon Musk and Twitter Inc have not yet reached an agreement to end the litigation. (Case)

Wilmington, Del.:

Elon Musk and Twitter Inc have yet to reach an agreement to end the litigation and pave the way for the world’s richest person to close his $44 billion deal for the social media platform, Reuters said on Wednesday. Reuters two sources familiar with the dispute.

Mr. Musk, the world’s richest person, offered Twitter Monday night that he would change course and stick to his April deal to buy the company for $54.20 a share if Twitter dropped its lawsuit against him.

Twitter’s legal team and Elon Musk’s attorneys briefed the judge on Tuesday on their attempts to try to overcome mutual mistrust and find a process to close the deal.

“Keep an eye on the case,” a source said.

Elon Musk is due to be dropped off Thursday in Austin, Texas.

“That’s the pressure point,” said a second source.

Elon Musk quashed a deposition in late September citing concerns about possible exposure by a Twitter lawyer to someone who later tested positive for COVID-19, according to a court filing made public Wednesday.

Shares of Twitter fell 2.5% to $50.72 in early trading. The stock hit its highest Tuesday since Mr. Musk and Twitter agreed in April that he would buy the company for $54.20 a share.

Mr Musk, who is also chief executive of electric vehicle maker Tesla Inc, said in July he was pulling out of the takeover deal because he discovered Twitter misled him about the number of fake accounts, among other allegations.

Part of Mr. Musk’s case was based on allegations by Twitter whistleblower Peiter “Mudge” Zatko that became public in August.

Twitter’s legal team wanted to investigate whether Quinn Emanuel’s attorney, Alex Spiro, who led the case for Elon Musk, contacted the whistleblower as early as May. The law firm said in court filings that its attorneys have not communicated with Zatko or his representatives.

Twitter uncovered an anonymous May 6 email to Spiro from “a former Twitter executive leading teams directly involved with trust and safety/content moderation.” The sender offered to communicate “by other means”.

Zatko, who was Twitter’s chief security officer until his firing in January, said under oath that he had not communicated with Musk or Musk’s attorneys at Quinn Emanuel.

The judge, Chancellor Kathaleen McCormick of the Delaware Court of Chancery, said in a ruling on Monday that it was “at least plausible” that Zatko sent the anonymous email. She ordered Spiro to file a statement with the court by 4:30 p.m. ET explaining his actions regarding the May 6 email.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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