Elon Musk likely struggles to win Twitter legal battle – legal experts

Elon Musk likely struggles to win Twitter legal battle – legal experts

Written by Sinad Karahimetovic

Evercore ISI hosted an expert panel centered around Elon Musk’s court battle with Twitter (NYSE:) over a $44 billion deal. Eric Talley, professor of law at Columbia University, and Ann Lipton, professor of law at Tulane University, among other legal experts, participated.

In general, legal experts see Twitter as having an advantage although “some unknowns may affect the outcome of the experiment,” one analyst said in a note. The consensus among panelists is that this will be a relatively quick experiment, likely to be completed by April 25, 2023.

They also agreed that demonstrating a material adverse impact (MAE) is an “extremely high standard” that requires “proof of a negative impact to significantly threaten the company’s overall earnings potential in a significant way over the long term”.

โ€œOur panel members believe that Musk may not have a strong enough case to prove MAE. While this is a common argument by buyers in mergers and acquisitions, there are very few success tracks in Delaware court,โ€ one panelist noted. So far,” added the analyst.

If Twitter eventually wins this court battle, it is very likely that Musk will comply with the decision. This is because many of his companies are registered in Delaware.

“One panel member also noted that Musk’s other ongoing trials in Delaware (including the Tesla compensation package, and SolarCity) could also affect Musk’s consideration if the court rules against him,” the analyst concluded.

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