Elon Musk wants to publish a counter-lawsuit that he filed against Twitter as soon as possible — but the social media site is fighting back, arguing that releasing the document could expose “confidential” business information to the public, The Post has learned.
The squabble centers around the 164-page countersuit that Musk filed against Twitter last Friday. The suit, which was filed under seal and has not yet been seen by the public, represents an escalation in the battle over the Tesla CEO’s abandoned $44 billion agreement to buy Twitter.
Companies are often allowed to redact material from legal documents that could reveal confidential information about their business — and Twitter argued that it needs more time to see “what information in [Musk’s] filings, if any, to designate as confidential.” The company says Musk should not be allowed to publicly file the suit until at least Thursday.
Musk’s legal team shot back that Twitter is engaged in a stalling tactic to get ahead of the story in the press. They said in a counter-filing on Wednesday that Twitter is expected to file its response to Musk’s suit by Thursday — and that Twitter’s response to Musk’s countersuit could potentially be available to the public before Musk’s countersuit itself, unfairly giving the company a leg up in media coverage.
“Twitter should not be permitted to continue burying the side of the story it does not want publicly disclosed,” Musk’s lawyer Edward Micheletti wrote in a letter to Delaware Court of Chancery Judge Kathaleen McCormick.
Micheletti added that Twitter was trying to bend court rules to “get their response to Defendants’ side of the story to the public before Defendants’ story can be told.”
Musk’s side believes that Twitter should not request any redactions to the countersuit because none of its content “meets the standard for sealing,” according to emails between the two sides released as court exhibits on Wednesday.
Under court rules, Musk’s countersuit and Twitter’s response should be available to the public by Friday at the latest — potentially in redacted form.
Twitter shares were up about 0.2% at $41.07 shortly before the market closed on Wednesday.
The company’s stock has rallied 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, indicating that investors are increasingly bullish on Twitter’s chances in the legal battle.
The trial is set to open on Oct. 17.