The judge overseeing Twitter’s lawsuit seeking to force Elon Musk to follow through on his purchase agreement with the company, criticized the billionaire for failing to turn over text messages which Twitter had subpoenaed in the lawsuit.
Delaware Chancery Judge Kathaleen St. Jude McCormick noted the “glaring deficiencies” in Musk’s legal team’s response to Twitter’s request for text massages between the automaker and his top aide Jared Birchall about the proposed deal and his subsequent effort to withdraw from it. She ordered both men to surrender phone records detailing their text messages.
“Third parties produced text messages with Musk that Musk himself did not produce,” she noted. She also cited obvious gaps in some of the messages he did submit. However she did acknowledge Musk’s legal team had been working to address many of the problems with their disclosures which Twitter had complained about in pre-trial information exchanges.
Both Musk and Twitter’s legal teams declined comment about the ruling.
McCormick had noted specifically that among the texts Musk turned over, were two messages 18 minutes apart sent from Robert Steel of Perella Weinberg to Musk. In the first Steel asked a question, and in the next, he replied, “OK. Got it…,” indicating Musk had replied to him. However there was no reply in the surrendered text history.
McCormick wrote, “Assuming that Musk’s response was not telepathic, one would expect some evidence of it in defendants’ document production. But defendants provided none by the deadline.”
The judge also noted that although most of the information disclosure burden in the case has fallen on Twitter, the company’s request for all of Musk’s and Birchall’s texts, regardless of relevance, was too broad, and, “too extreme to be granted.”
McCormick also ruled on Wednesday that Musk’s lawyers could amend their counterclaims, with the claims from a whistleblower former-executive which the billionaire claims bolster his case for being allowed to walk away from the agreement. The judge refused another request from Musk to push back the October 17th trials date in the case.
Musk and Twitter are also battling over Slack messages posted by twitter employees discussing Musk’s proposed takeover of the company and his subsequent pulling out of the deal. Musk’s team is accusing Twitter of reneging on an agreement to turn over the messages.
Twitter says it will surrender Slack messages from CEO Parag Agrawal, and head of financial analysis and planning Manish Chabria, however it maintains the effort required to locate and review others would be overwhelming.
McCormick has heard arguments over the Slack messages, but has yet to rule on the issue.
The case is Twitter v. Musk, 22-0613, Delaware Chancery Court (Wilmington)