Elon Musk must wait to get a counterclaim against Twitter, judge rules

Elon Musk must wait to get a counterclaim against Twitter, judge rules

Late in the day, the judge who oversaw the case rejected Elon Musk’s attempt to publish a counter-lawsuit he filed against Twitter last week on Wednesday.

Delaware District Court Judge Kathleen McCormick ruled that Musk’s counterclaims, answer and positive defenses to the Twitter case will be made public by noon Friday, according to court filings.

The Post has learned that the decision handed Twitter a win in what will likely be the first of several skirmishes after the social media site argued that the release of the documents could expose “confidential” business information.

The brawl revolves around the 164-page counterclaim that Musk filed against Twitter last Friday. The lawsuit, which has been filed under seal and not yet seen by the public, marks an escalation in the battle over the abandoned Tesla CEO’s $44 billion deal to buy Twitter.

Companies are often allowed to redact material from legal documents that could reveal confidential information about their business — and Twitter has argued that it needs more time to figure out “what information is in [Musk’s] filings, if any, to designate them as confidential.”

Musk’s legal team alleged that Twitter engaged in a stall tactic to advance the story in the press. They said in their counterfile on Wednesday that Twitter is expected to file its response to Musk’s suit by Thursday — and that Twitter’s response to Musk’s counterclaim could be publicly available before Musk’s suit itself, unfairly giving the company a role in it. Media coverage.

Musk’s team said Twitter is engaging in a stall tactic to advance the story in the press.
AFP via Getty Images

“Twitter should not be allowed to continue burying the side of the story that it does not want to reveal publicly,” Musk attorney Edward Micheletti wrote in a letter to McCormick.

Micheletti added that Twitter was trying to misrepresent the court’s rules “to get their response on the defendants’ side of the story to the public before the defendants’ story is told.”

Musk’s side believes that Twitter should not request any redaction of the lawsuit because none of its content “does not meet the criteria for a seal,” according to emails between the two sides that were released as court documents on Wednesday.

Delaware Court
The trial is scheduled to begin in Delaware, Delaware court on October 17.
Bloomberg via Getty Images

Under court rules, Musk’s counterclaim and Twitter’s reaction must be publicly available by Friday at the latest — likely in redacted form.

Twitter shares closed 0.1% higher at $41.00 on Wednesday.

The stock is up about 26% since the company sued Musk on July 12 in an attempt to force him to honor his agreement to take over Twitter for $54.20 per share, suggesting investors are increasingly optimistic about Twitter’s chances in the legal battle.

Ahead of the trial, which is set to begin on October 17, both Musk and Twitter have sent subpoenas in an effort to gather evidence to support their cases.

The Financial Times reported on Wednesday that Musk had summoned Goldman Sachs and JP Morgan, two banks that advised Twitter about Musk’s takeover bid.

Meanwhile, Twitter has summoned several members of Musk’s Silicon Valley social circle, including elite tech investors Mark Andreessen, Shamath Palihapitiya, David Sachs, Steve Jurvetson, Jason Calacanis, Keith Rabois and Joe Lonsdale, The Washington Post reports. Monday.

Lonsdale criticized Twitter’s subpoena, calling it a “giant fishing expedition” in a tweet Monday.

“I have nothing to do with this except for a few stinging comments, but I did get a notice on the ‘You ordered here,'” Lonsdale said.

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