Elon Musk accuses Twitter of fraud in acquisition, reveals filing in court

Elon Musk accuses Twitter of fraud in acquisition, reveals filing in court

Elon Musk is fighting Twitter’s lawsuit seeking to force him to close the deal.

San Francisco:

Elon Musk has accused Twitter of fraud, accusing the social media platform of misleading him about key aspects of his business before he agreed to a $44 billion buyout, as the battle between them heats up. up.

The Tesla boss filed a lawsuit late Thursday as he fought Twitter’s lawsuit to force him to close the deal he tried to rescind.

Musk argued in a court filing in Delaware that the number of users who could be shown ads on the platform was much lower than the company’s figure.

“Twitter’s disclosures have gradually unraveled, with Twitter frantically shutting down information in a desperate attempt to prevent Musk’s Parties from discovering his fraud,” the statement alleges.

In its own profile, Twitter dismissed the savvy billionaire’s argument, calling it “unbelievable and untrue.”

According to Musk, he – the billionaire founder of many companies, advised by Wall Street bankers and lawyers – was scammed by Twitter to sign a merger deal worth $44 billion. USD.

Last week, Musk filed his objection, which was finally made public on Thursday, along with a legal defense against Twitter’s claim that the billionaire was contractually bound to complete the deal. manage.

– ‘Distorted, misrepresented facts’ –

“The counterclaims are a litigation story created to contradict evidence and common sense,” Twitter argued in the filing.

A five-day trial reviewing Twitter’s lawsuit against Musk has been scheduled for October 17.

The Tesla boss wooed Twitter’s board with an offer of $54.20 per share, but then in July he announced the termination of their deal because the company misled him about tally of fake and spam accounts.

Twitter, whose stock price closed at $41.06 on Thursday, was stuck by estimates that less than 5% of activity on the platform is due to software “bots” rather than humans.

Twitter told the court that Musk’s claim that the highest number of false accounts was 10% was “unconfirmable.”

The company also countered Musk’s assertion that he had the right to waive the deal if Twitter’s bot counts were found to be false, as he didn’t ask anything about the bots when making the buyout offer.

Twitter accused Musk of making up stories to get out of the merger deal that he no longer found appealing.

“Twitter has complied in all respects with the merger agreement,” the company said in its filing with the Chancery Court in Delaware.

“Musk’s counter-statements, based on outright misrepresentation, misrepresentation and deception, change nothing.”

The social media platform called on shareholders to confirm the deal, putting up a vote on the merger on September 13.

Billions of dollars are at stake, but so is the future of Twitter, which Musk has said should allow any legal speech – an authoritarian stance that has raised concerns the network could be used used to incite violence.

(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)

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