Elon Musk says legal pressure forced full-price Twitter deal

The courtroom in San Francisco has become the stage for a high-profile corporate showdown, with Elon Musk describing why he ended up paying full price to acquire Twitter Inc. in 2022.

Tesla Inc. CEO testified to jurors that his lawyers advised him that Delaware Chancery Court Chief Judge Kathaleen St J. McCormick was "extremely biased" against him and that it was unlikely for him to prevail in the case to avoid buying Twitter for $44 billion.

The testimony by Musk has come at a time when Twitter investors have accused Musk of manipulating the compnay's stock to buy it at a lower price. Musk has been quick to claim that his tweets in 2022 criticising Twitter had little effect on the stock price and were simply his opinion.

McCormick has ruled against Musk on prior ruling, including twice in 2018, when he invalidated a pay package for Musk at Tesla, a decision that was later overturned by the Delaware Supreme Court.

However, Musk cited such decisions in his rationale for moving the company from Delaware to Texas, a move that has been emulated by other companies, such as Dropbox and TripAdvisor.

In response, Delaware has moved to pass legislation that protects its corporate incorporation business and offers greater flexibility for controlling shareholders.

The jury is still being asked to weigh in on the case, with arguments on whether or not Musk has defrauded Twitter investors. The claim by Musk that there is judicial bias is now a matter of public record and serves to underscore the level of corporate legal activity that takes place in Delaware, a state that is home to more than 60% of Fortune 500 companies.