Businessman Elon Musk never fails to attract the public’s attention. By breaking the deal to buy Twitter for $44 billion, the businessman provoked one of the biggest legal scandals of our time. The firm’s management has sued the billionaire and intends to force the deal.
The other day, a new key figure in the dispute was Judge Kathaleen McCormick. She was appointed to hear the case and immediately drew media attention. The fact is that the president of the Delaware Court of Chancery has a reputation as a “corporate hawk.”
McCormick’s record includes a high-profile case involving the purchase of DecoPac Holding Inc. The dispute between investor Kohlberg & Co LLC and the owners of said company is much like the situation with Elon Musk and the social network Twitter. The buyer refused to close the deal, claiming funding problems.
Elon Musk on Twitter: “pic.twitter.com/JcLMee61wj / Twitter”
The judge ruled in favor of DecoPac and forced investors to buy the firm for $550 million. She attributed her verdict to “confidence in the deal” and dismissed all of the defendant’s arguments. That said, courts in corporate wars often side with the rejecting purchasers.
However, experts urge not to compare the Elon Musk case to the DecoPac showdown. Firstly, the record of McCormick has other precedents when she sided with shareholders. Secondly, the amount of the deal of $44 billion and the possible impact of the situation on Tesla, change the rules of the game.
Nevertheless, Elon Musk is facing a man who is unlikely to be uncomfortable with a prominent businessman.
“I wouldn’t bet on McCormick having his knees bent,” said Eric Talley, a Columbia University corporate law major.
Last Friday, July 8, it was revealed that Musk was abandoning his intention to acquire the social networking site Twitter. The reason was fake accounts on the platform. Twitter representatives said that their number did not exceed 5% of the total user base, but Musk believes otherwise.
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