5282 Musk, Twitter CEO depositions postponed in buyout case

Musk, Twitter CEO depositions postponed in buyout case

WILMINGTON, Del. — Elon Musk and Twitter CEO Parag Agrawal are rescheduling their depositions in the company’s lawsuit over Musk’s $44 billion buyout.

A new date for the postponed depositions has not been set.

Musk and Agrawal were scheduled to sit down for questioning Monday. The billionaire’s deposition was supposed to start at 9:30 a.m. at a law office in Wilmington, Del., while Agrawal was due to appear at one in San Francisco, court filings show.

Instead, Agrawal wanted to reschedule his session for later this week, while Musk wanted his to take place somewhere other than Delaware, according to the people, who asked not to be identified discussing a private subject. Depositions often are rescheduled for the convenience of the parties to a legal dispute and their lawyers.

A representative for Twitter declined to comment on the matter. A spokesman for Musk’s lawyers also declined to comment.

When the depositions take place, Musk‘s tendency to dish out insults while being questioned will likely be tested as lawyers for Twitter Inc. interview the Tesla Inc. CEO about his abrupt decision in July to ditch his $44 billion deal for the social media company.

Testifying in past legal battles, the world’s richest person has called opposing attorneys “reprehensible,” questioned their happiness and accused them of “extortion.” He asked one attorney if he was working on a contingency because the lawyer’s client was allegedly behind on child support payments.

“So probably you’re on a contingency or you’re taking that kid’s money. Which is it?” Musk said to a lawyer for a whistleblower in a case against Tesla, according to a transcript of the 2020 deposition.

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The high-stakes Twitter interview will be closed to the public and could take two or three days.

Musk’s lawyers will want to keep him focused on answering questions, but that can be a challenge with such a smart and opinionated witness, said James Morsch, a corporate litigator who is not involved in the court battle.

“I would compare it to trying to hold a tiger by his tail,” said Morsch.

In a 2019 deposition in litigation over Tesla’s takeover of solar-panel maker SolarCity, Musk refused five times to answer one of the initial questions because of the way it was worded, the transcript shows.

“We can stare at each other until you rephrase it,” Musk told opposing attorney Randall Baron, according to a transcript.

“I’ll guess we’ll just cancel this deposition,” Baron responded. Baron suggested he would seek an order from the judge directing Musk to answer questions, which seemed to get things moving.

Twitter declined to comment and Musk’s legal team did not immediately respond to a request for comment.

Twitter’s attorneys are expected to use the interview to try to show that Musk abandoned the deal due to falling financial markets and not because the company misled him about the real number of users or hid security flaws, as he alleged.

Musk wants a judge to allow him to walk away without penalty, while Twitter wants an order forcing him to buy the company for $54.20 per share.

A five-day trial is scheduled to begin Oct. 17 in Wilmington, Del.

Dozens of depositions are scheduled in the case, including of Twitter’s co-founder Jack Dorsey, as each side questions witnesses and gathers evidence to make its case.

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Musk at times has shown in his depositions the charm and wit he deploys on Twitter, where he has built a cult-like following.

The Twitter deposition atmosphere could be especially fraught. Its legal team includes the firm of Wachtell, Lipton, Rosen & Katz, and the main lawyer on the case, Bill Savitt, initially represented Musk and Tesla in the SolarCity deal, although not during discovery and depositions in the litigation.

Savitt did not respond to a request for comment.

Twitter is also represented by Wilson Sonsini Goodrich & Rosati.

A constant in the three depositions reviewed by Reuters is Musk’s dislike of attorneys representing the opposing side, who he accuses of “trickery” and pursuing him merely for money.

“I heard yesterday that 3 percent of the U.S. economy is legal services. That’s one of the saddest facts I’ve heard in a long time,” Musk said to Baron, the lawyer in the SolarCity deposition.

The deposition in the litigation with the Tesla whistleblower, Martin Tripp, who accused the company of wasting raw materials, began with Musk being asked if understood the oath he took to testify truthfully.

“This sounds like some sort of legalese, semantic argument. The — what is the whole truth of something?,” said Musk, according to the transcript. “You say, ‘Is that a tree? What kind of tree is it? Is it a tree with lots of leaves?’ Or is — if you’re saying something is a tree is the whole truth? No, of course not.”

Tripp’s attorney reminded Musk that the judge warned he would oversee the deposition in person if questions weren’t answered properly.

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“Do you intend to comply with the judge’s admonition there?” asked attorney William Fishbach.

“Of course,” said Musk.

Reuters and Bloomberg contributed to this report.

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