Elon Musk is granted a suspension of the Twitter lawsuit by the judge, with the stipulation that the agreement with the social network must be concluded by 28 October or the lawsuit will resume.
Elon Musk: lawsuit filed by Twitter is officially stayed for now
Judge McCormick overseeing the case in Delaware’s Chancery Court has approved Elon Musk’s request for a suspension of the lawsuit, provided the deal with Twitter occurs by 28 October.
JUST IN: Judge approves Elon Musk's request to halt trial, says deal must close with Twitter by October 28th or trial will resume.
— Watcher.Guru (@WatcherGuru) October 6, 2022
“JUST IN: Judge approves Elon Musk’s request to halt trial, says deal must close with Twitter by October 28th or trial will resume.”
The long controversial issue related to the social network’s takeover bid, filed last April by the world’s richest man, may now have an expiration date.
Indeed, the judge has reportedly given an ultimatum that if the deal is not finalized by the end of October, the trial will resume in November.
Musk’s lawyers are reportedly working to close the deal by receiving new assurances from the banks that previously agreed to finance the purchase. Not only that, the lawyers argue that the lawsuit filed by Twitter is only hurting shareholders’ interests and benefiting executives.
Elon Musk and the confirmation of Twitter’s proposed purchase
Just earlier this week, Musk had again stated that he wanted to buy Twitter, renewing the $44 billion proposal.
Indeed, the letter that the billionaire’s lawyers allegedly sent to the social network would contain a proposal to proceed with the deal at $54.20 per share, as previously agreed, only if the court agreed to stay the process. In response, Twitter reportedly stated that it was willing to settle the case.
The market reaction to these published intentions was well appreciated. And in fact, on that very day, Twitter’s stock sprang, rising more than 21%. TWTR’s stock rose from $42.95 to $52.
Musk’s second thoughts about buying Twitter were based on a failure by the social networking company to provide requested data related to the number of bots and fake profiles registered on the platform.
Apollo Global and Sixth Street’s withdrawal from the Twitter purchase
While some banks and companies are proceeding in the same direction as Musk, it appears that others such as Apollo Global Management and Sixth Street Partners have instead decided to suspend negotiations with the CEO of Tesla and SpaceX, for the financing and acquisition of Twitter.
This amounts to a total of more than $1 billion in funds that would have been withdrawn from the Twitter deal. At the same time, Musk himself reportedly confirmed that the two companies were not part of the original funding group anyway.
This means that the defection of these two funds does not call into question Musk’s financial capacity, but only the failure to bring in new backers.
Class action lawsuit over Dogecoin
The billionaire Musk, while obtaining a suspension for the Twitter lawsuit, appears also to be the subject of another lawsuit: the class action for promoting Dogecoin.
Basically, after the June filing by Keith Johnson, in September Colby Gorog, Joshua Flint, Louis Robinson, James Duong, Fernando Uriza, Michael Twomey, and Jessica Calkins also appear to have joined the list of plaintiffs.
The class action is for $258 billion, a value so high that it exceeds the total wealth of the world’s richest man, and blames Musk for promoting the DOGE memecoin, calling it a pyramid scheme.
The plaintiffs point out that almost everyone who bought Dogecoin after 4 February 2021 lost most of the money invested, claiming that the price of DOGE will never again approach its peak of 73 cents.
DOGE and SHIB outperform BTC
Despite plaintiffs’ claims in their class action lawsuit against Elon Musk, memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have performed even better than Bitcoin (BTC), the crypto queen.
And in fact, in mid-August, it appears that DOGE reportedly posted a +22% and SHIB a +29 % in seven days, compared to BTC, which, in that week, reportedly posted a pump of just 2.9%.
It may be that memecoins remained surrounded by more investor enthusiasm, surpassing that for BTC which, at the time of writing, is at $20,000.