TWTR - Musk Twitter square off in hearing over whistleblower soured deal

A key Delaware hearing has begun Tuesday afternoon in the case of Twitter ( NYSE: TWTR ) v. Musk et al., with no fewer than eight legal issues on the table ahead of a trial that's now less than three weeks away that will establish what happens with Elon Musk's soured $44B deal to buy the company.

In the Delaware Court of Chancery, Chancellor Kathaleen McCormick is hearing lawyers for both sides argue for some major discovery motions (three from each side); a challenge from Musk's team on confidentiality redactions; and Morgan Stanley's ( MS ) opposition to a Twitter motion to compel production of documents.

Last Thursday, McCormick said she would allow Musk to amend his counterclaim to bring in facts around Twitter's ( TWTR ) $7.75M severance payment to whistleblower Peiter "Mudge" Zatko , though she said she would give hearing to Twitter's counter-request for additional discovery about early contacts between Musk and Zatko - a bid that Musk is resisting.

That and other discovery issues are set to come up in Tuesday's hearing, set for slightly more than three hours (and which may not result in an immediate ruling).

Twitter stock was flat on the day as the hearing began.

Monday was set to bring some key developments with depositions of Musk and Twitter ( TWTR ) CEO Parag Agrawal, but both of those will come at a later date .

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