In mid-July, Twitter sued Elon Musk to force him to honor his $44 billion acquisition commitment. The trial is due to start on October 17.
Multi-billionaire and Tesla boss Elon Musk accuses Twitter of “fraudas part of the lawsuit over the $44 billion deal he signed to acquire the social network but is seeking to break.
Elon Musk, in arguments filed Thursday evening in a Delaware state business court, accuses Twitter of having defrauded on the number of monetizable accounts of the social network, according to this 165-page court document consulted Friday by the AFP.
A legal battle is engaged between the richest man on the planet and the social network. Elon Musk’s lawyers accuse Twitter of havingmasked the truthon the number of 238 million monetizable daily users claimed by the social network. According to them, they are about 65 million less and “most advertisements“would only be broadcast”with less than 16 million users, a fractionof what Twitter claims.
False declarations, false value
The complaint, which describes “distorted representations“from the social network of”sins“, affirm that “Twitter frantically blocked information from circulating in a desperate attempt to prevent (Elon Musk) from discovering the fraud“. In mid-July, Twitter sued Elon Musk in the Delaware Court of Chancery, a court specializing in business law, to force him to honor his acquisition commitment for $ 44 billion. The trial is due to start on October 17.
Two weeks later, the richest man in the world had counter-attacked with a complaint “confidential“. Elon Musk approached Twitter in April, then signed a buyout deal for $54.20 a share. He unilaterally ended it in early July, on the grounds that the San Francisco-based company allegedly lied about the proportion of automated and spam accounts on its platform. Tesla boss accuses board of covering up true proportion of inauthentic accounts Twitter estimates it to be less than 5%.
The official documents filed by the platform with the American stock market policeman “contain numerous material misrepresentations and omissions that distort the value of Twitter and led Elon Musk to agree to buy the company at an inflated price“, assure the lawyers of the businessman. Twitter’s strategy, they continue, has been to “to play hide and seek” to prevent the buyer from “discern the truth“.
Twitter responds that the businessman rushed the negotiations and that the agreement never mentioned the fake accounts, and the social network’s lawyers denounce a “attempt to evade a contract that Musk no longer finds attractive since the stock market fell“. Between the general decline in the stock market in recent months, the decline in social media advertising revenue linked to economic conditions and public criticism from Elon Musk, Twitter’s stock collapsed to around $32 on July 11. It was worth $41.97 on Friday, up 2.20%. The title of Tesla lost 6.05% to 869.92 dollars.
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