August 9, 2022
Elon Musk’s countersuit accuses Twitter of fraud

According to media reports, Elon Musk accused Twitter of fraud over his canceled $44 billion deal for the social media company, which he said withdrew necessary information and told his team about its actual user base. misled.

According to The Washington PostThe billionaire and Tesla CEO alleged in a countersuit filed Thursday that Twitter committed fraud, breach of contract and violated the Texas Securities Act.

Musk’s counterclaims were filed confidentially last week and were closed in a filing late Thursday in Delaware Chancery Court, The Wall Street Journal reported,

Musk offered to buy the company earlier this year, then tried to back out of the deal, claiming that Twitter was affected by more “spam bots” and fake accounts than it had disclosed.

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

Musk’s lawyers argued that Twitter’s own disclosure showed it has “monetizable daily active users” who can be shown digital ads, compared to the 238 million that Twitter claims, posts and posts. Journal reported.

The filing also noted that most of Twitter’s ads are only shown to a segment of the company’s user base, the post said.

In an unexpected twist, before Musk’s own counterargument surfaced, Twitter recorded its response denying Musk’s allegations.

Twitter conceived Musk’s argument as “a story, in an attempt to avoid a merger agreement that Musk no longer finds appealing.”

The matter is to be heard on October 17.

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