Elon Musk’s countersuit accuses Twitter of fraud over $44B deal

Date:



Elon Musk accused Twitter of fraud in a countersuit over his aborted $44 billion deal for the social media company, which he said held back necessary information and misled his team about its true user base, according to media reports.

According to The Washington Post, the countersuit filed by the billionaire and Tesla CEO filed Thursday alleges that Twitter committed fraud, breach of contract and violation of the Texas Securities Act.

Musk’s counterclaims were filed confidentially last week and unsealed in a filing late Thursday at the Delaware Chancery Court, the Wall Street Journal reported.

Musk had offered to buy the company earlier this year, then tried to back out of the deal by claiming the social platform was infested with much larger numbers of “spam bots” and fake accounts than Twitter had disclosed.

Twitter sued to force him to complete the acquisition. Musk responded by filing his countersuit.

Musk’s attorneys argued that Twitter’s own disclosures revealed that it has 65 million fewer “monetizable daily active users,” who can be shown digital ads, than the 238 million that Twitter claims, the Post and the Journal reported.

The filing also said most of Twitter’s ads are shown only to a sliver of the company’s user base, the Post said.

In an unexpected twist, Twitter filed its response denying Musk’s accusations before Musk’s own counterclaims surfaced.

Twitter called Musk’s reasoning “a story, imagined in an effort to escape a merger agreement that Musk no longer found attractive.”

The case is scheduled to go to trial on October 17.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Suicides in Japan surged due to COVID-19 pandemic

NEWYou can now listen to Fox News articles! ...

New Jersey's lottery numbers for Tuesday, Aug. 16

NEWYou can now listen to Fox News articles! ...

Elon Musk unveils Tesla robot, says it will perform ‘boring’ chores by year’s end

Elon Musk has unveiled more details about his...

How to live longer: People with low levels of an acid are 61% more likely to die early

Humans have made great leaps and bounds in...