Court Denies Musk Bid To Delay Twitter Lawsuit

A Delaware court has denied billionaire Elon Musk’s attempt to delay his trial over his attempt to walk away from the signed agreement to purchase Twitter.

However, Delaware Court of Chancery Chancellor Kathaleen St. Jude McCormick handed Musk a win when she allowed recent revelations from a whistleblower to be used in court arguments.

In her denial of the motion to delay, McCormick said that any more time brings “the greater risk of irreparable harm to Twitter.” She noted the company has already demonstrated that damage has been done “over the course of this litigation.”

Musk claims the number of fake accounts on the platform could be as high as 33%, astronomically above the 5% claimed by Twitter. This would justify a much lower valuation of the company.

This ruling presents a setback for Musk’s efforts to back away from the $44 billion deal to acquire the social media platform. However, in another of the four letters issued by McCormick, he was handed a victory.

Complaints first reported in the Washington Post by a well-respected whistleblower will be allowed into the case.

Former Twitter head of security Peiter “Mudge” Zatko made explosive claims that the company is fraught with security issues and cannot protect the information from its hundreds of millions of users from being breached.

Zatko said the platform does not have the resources or motivation to protect users or determine the number of bot accounts it holds.

The effect on Twitter shares was immediate as the company’s stock rose 6% after news broke that McCormick will not move the trial date, which is set for October.

Shares have fallen from $64.98 just a year ago to $41.22, a drop of almost 37%.

A revelation during Tuesday’s court proceedings showed that Musk texted a managing director with Morgan Stanley, Michael Grimes, on May 8 expressing his fears of potential WWIII. He made the comment ahead of a speech by Russian President Vladimir Putin.

Musk commented that “it won’t make sense to buy Twitter” if another world war is on the horizon. Some analysts believe this could put the billionaire in breach of contract as he is required to do his best to consummate the deal.