Francis Pileggi Speaks with News Media About Twitter-Musk $44 Billion Dispute

Wilmington, Del. (July 13, 2022) - Delaware Managing Partner Francis G.X. Pileggi recently spoke with Law360 and Reuters for articles regarding the legal dispute between Elon Musk and Twitter, after Mr. Musk decided that he was not obligated to consummate the $44 billion agreement for his purchase of the social media platform.

The Law360 article, titled, “Musk's Bid For Free Twitter Exit May Hit Chancery Dead End” and published one day before Twitter filed suit, describes that although this case is “historic in scale and stakes,” the decision will “likely to turn on familiar contract arguments.” The article includes the perspectives of various legal experts regarding how quickly the litigation will proceed in the Delaware Court of Chancery and whether Mr. Musk ultimately will be permitted to exit his contract with Twitter.

Mr. Pileggi told Law360 that the Chancery Court has managed high-speed, high-stakes litigation efficiently on several occasions, including in a matter involving Air Products and Chemicals Inc.'s $5.9 billion hostile takeover bid for Airgas Inc. He noted, "Not only was the Chancery decision rendered expeditiously, but the Delaware Supreme Court agreed to hear oral argument on an appeal within about three weeks of the appeal being filed," adding, “That means that three sets of briefs that are usually done over several months had to be done in about two weeks, to give the court time to read them before the oral argument."

Likewise, in speaking with Reuters for an article titled, “Twitter Hits Back at Musk, Says No Deal Obligations Breached,” Mr. Pileggi provided his opinion on Mr. Musk’s contentions that Twitter misrepresented the number of fake accounts on its platform. He told Reuters that if Mr. Musk defends the suit on these grounds, it could put Twitter’s “bots” at the forefront of future litigation, explaining, “I’d be surprised if he's prohibited from getting that information.” Mr. Pileggi further noted that if the number of fake accounts on Twitter is significantly higher than the 5% figure the company estimates, this could potentially lead to a negotiation for a reduced price for the social media platform.

In a follow up article from Reuters titled, "Explainer: Can Elon Musk defy a court if ordered to buy Twitter?" Mr. Pileggi also commented on the scope of the Chancery Court's authority, noting, "The court has capacious powers to enforce its orders." These Reuters articles have been republished by several other media outlets, including the New York Post and Yahoo! News.

Mr. Pileggi is a member of Lewis Brisbois’ Complex Business & Commercial Litigation Practice. He focuses primarily on high-stakes disputes of corporations, stockholders, members of boards of directors, members and managers of LLCs, and those with managerial or ownership interests in other forms of entities. In addition, since 2004, Mr. Pileggi has also maintained the Delaware Corporate & Commercial Litigation Blog, at www.delawarelitigation.com, in which he analyzes key corporate and commercial decisions from Delaware's Supreme Court and Court of Chancery.

Read the full Law360 article here (subscription may be required) and the Reuters articles here and here.