Elon Musk slaps Twitter with countersuit over $44 billion buyout

Elon Musk has countersued Twitter, escalating his legal fight against the social media company over his bid to walk away from the $44 billion purchase.

Elon Musk countersued Twitter Inc on Friday, escalating his legal fight against the social media company over his bid to walk away from the $44 billion purchase, although the lawsuit was filed confidentially.

While the 164-page document was not publicly available, under court rules a redacted version could soon be made public.

Musk's lawsuit was filed hours after Chancellor Kathaleen McCormick of the Delaware Court of Chancery ordered a five-day trial beginning Oct 17 to determine if Musk can walk away from the deal.

Twitter did not immediately respond to a request for comment.

Also on Friday, Musk was sued by a Twitter shareholder who asked the court to order the billionaire to close the deal, find that he breached his fiduciary duty to Twitter shareholders and award damages for losses he caused.

Musk owes a fiduciary duty to Twitter's shareholders because of his 9.6 per cent stake in the company and because the takeover agreement gives him a veto of many of the company's decisions, according to the lawsuit, which seeks class status. The lawsuit was filed by Luigi Crispo, who owns 5,500 Twitter shares, in the Court of Chancery.

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