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Musk can use whistleblower claims; judge won't delay Twitter trial

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Elon Musk

(Reuters) — Elon Musk can use a whistleblower’s claims in his legal case against Twitter Inc., but the billionaire cannot delay the trial over his attempt to walk away from his $44 billion deal for the company, a judge ruled Wednesday.

“I am convinced that even four weeks’ delay would risk further harm to Twitter,” wrote Chancellor Kathaleen McCormick of Delaware's Court of Chancery, in affirming the trial will start next month.

Shares of Twitter rose about 4% in early Wednesday trading to $40.15.

Mr. Musk's legal team argued Tuesday that justice demanded delaying the five-day trial so Mr. Musk could investigate claims by whistleblower Peiter Zatko, known as “Mudge,” that Twitter hid weaknesses in its security and data privacy.

Mr. Musk's initial case against Twitter claimed the company misrepresented the prevalence of spam or bot accounts on the platform.

Last month, Mr. Zatko's allegations became public and provided Mr. Musk, the world's richest person, fresh ammunition to bolster what legal experts said was a long-shot attempt to walk away without paying a $1 billion termination fee.

“We look forward to presenting our case in court beginning on Oct. 17th and intend to close the transaction on the price and terms agreed upon with Mr. Musk,” said a statement from a Twitter spokesman.

In July, Twitter sued Mr. Musk, CEO of electric vehicle maker Tesla Inc., to hold him to his April agreement to buy the company for $54.20 per share. The company has alleged that Mr. Musk got cold feet over the deal as global politics and inflation rattled markets soon after the deal was signed.