Judge halts Musk vs. Twitter trial to give time to close the deal

Delaware Judge Kathaleen McCormick ruled on Thursday that the trial between the social media company Twitter and Tesla CEO Elon Musk will be halted temporarily to give the two sides time to reach an agreement.

Just weeks after sending their third termination letter to Twitter which the company said was ‘’invalid’’, Musk’s lawyers sent another letter on Monday proposing the close the deal at the original price, $54.20 per share, $44 billion in total.

On Wednesday, the judge said in a letter that the trial would still continue, saying: “The parties have not filed a stipulation to stay this action, nor has any party moved for a stay.”

On Thursday, Musk’s lawyers filed a motion to stay the trial which would begin on October 17, saying that there’s no need for it to proceed as they already agreed to close the deal. 

Twitter, on the other hand, opposed the motion expressing concerns that Musk’s agreement may not guarantee a fast process for the transaction to be closed.

The same day, Judge Kathaleen McCormick ordered a halt on the trial, saying: “Defendants have stated that ‘the closing is expected on or around October 28, 2022. Plaintiff Twitter, Inc. opposes the motion on the basis that Defendants’ agreement will not ensure that the transaction closes fast enough.’’

‘’This action is stayed until 5 p.m. on October 28, 2022, to permit the parties to close on the transaction. If the transaction does not close by 5 p.m. on October 28, 2022, the parties are instructed to contact me by email that evening to obtain November 2022 trial dates,” the judge wrote.