World Elon Musk files countersuit under seal vs Twitter over $44B deal
Elon Musk allegedly had an affair with Google co-founder Sergey Brin's wife, sparking divorce
A new report has claimed that Elon Musk allegedly had an affair with Nicole Shanahan, the wife of his friend and Google co-founder Sergey Brin. According to the Wall Street Journal, the Tesla founder, 51, and Shanahan allegedly had a brief liaison in December, reportedly sparking Brin, 48, to file for divorce in January this year and thus ending his friendship with Musk. In papers obtained by the WSJ, Brin cited "irreconcilable differences" whenAccording to the Wall Street Journal, the Tesla founder, 51, and Shanahan allegedly had a brief liaison in December, reportedly sparking Brin, 48, to file for divorce in January this year and thus ending his friendship with Musk.
countersued Twitter on Friday, escalating his legal fight against the over his bid to walk away from the $44 billion purchase, although the lawsuit was filed confidentially.
Although the 164-page document was not publicly available, under court rules a redacted version could soon be made public.
Musk's lawsuit was filed hours after Chancellor Kathaleen McCormick of the Delaware Court of Chancery ordered a five-day trial beginning Oct. 17 to determine if Musk can walk away from the deal.
Twitter did not immediately respond to a request for comment.
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Musk, the world's richest person and chief executive of Tesla Inc TSLA.O, said on July he was abandoning the takeover and blamed Twitter Inc for breaching the agreement by misrepresenting the number of fake accounts on its platform.
Twitter sued days later, calling the fake account claims a distraction and saying Musk was bound by the merger contract to close the deal at $54.20 per share. The company's shares ended on Friday at $41.61, the highest close since Musk abandoned the deal.
McCormick fast-tracked the case to trial last week, saying she wanted to limit the potential harm to Twitter caused by the uncertainty of the deal.
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Twitter has blamed the court fight for slumping revenue and causing chaos within the company.
The two sides had basically agreed to an Oct. 17 trial, but were at odds over the limits of discovery, or access to internal documents and other evidence.
Musk accused Twitter this week of dragging its feet in response to his discovery requests, and Twitter accused him of seeking huge amounts of data that are irrelevant to the main issue in the case: whether Musk had violated the deal contract.
The chief judge in her order appeared to anticipate discovery disputes to come.
"This order does not resolve any specific discovery disputes, including the propriety of any requests for large data sets," said McCormick.
Musk also faces a week-long trial in Wilmington, Delaware, beginning Oct. 24. A Tesla shareholder is seeking to void as corporate waste and unjust enrichment the CEO's record-breaking $56 billion pay package from the electric vehicle maker.
(Reporting by Tom Hals in Wilmington, Del.Editing by Noeleen Walder, Chizu Nomiyama and Matthew Lewis)
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