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Kathaleen McCormick, bad news for Elon Musk

  • July 17, 2022
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Last Wednesday we had official confirmation that Twitter had taken Elon Musk to court, and just two days later we found out the judicial mechanism has already been

Kathaleen McCormick, bad news for Elon Musk

Last Wednesday we had official confirmation that Twitter had taken Elon Musk to court, and just two days later we found out the judicial mechanism has already been set in motion, with the first hearing scheduled for next week. The goal is with an expected duration of 90 minutes Judge Kathaleen McCormick hear arguments related to Twitter’s request for a September trial.

The purchase agreement between Twitter and Elon Musk was signed in Delaware, a jurisdiction usually chosen in the processes of acquisitions and mergers of large companies and which, when analyzing its “history”, shows a clear predisposition to side with those who want to complete the processes against those who want to retreat. That in itself is bad news, or rather a bad sign, for Elon Musk.

And today we know that from Yahoo! Finance which Choosing Kathaleen McCormick for the cause is also a bad sign for Elon Musk. Why? Given his history at the Delaware Court of Chancery, where he has been chancellor since last year, a short period in which, however, he has already faced other similar cases in which he would demonstrate a clear tendency to complete operations in which one party decided to retreat.

Kathaleen McCormick, bad news for Elon Musk

According to Columbia law professor Eric Talley He plays several points against Elon Musk. Among them, of course, he cites McCormick’s record in Delaware’s chancellorship, but also the legal framework that governs the state, the unique configuration of the Delaware court itself, and, secondary though it may seem, Elon Musk’s stance over the past few years. months in connection with the purchase operation.

There seems to be a growing consensus on Elon Musk’s numerous weaknesses in the process, and while anything is possible until the verdict is reached, most suggest that Musk will have to complete the purchase, but at the originally agreed upon value. very close, they either anticipate paying compensation that could be significantly higher than the billion dollars stipulated in the contract. Be that as it may, and although there is still room for surprises, it seems that finally Elon Musk’s transition with Twitter will be quite expensive.

Source: Muy Computer

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