Twitter Musk Lawsuit
FILE - The Twitter splash page is displayed on a digital device in San Diego, April 25, 2022. Twitter has filed a response to claims by billionaire Elon Musk that he has legitimate reasons for wanting to back out of his $44 billion deal to buy the social media company. In a counterclaim filed Thursday, Aug. 4, 2022, Twitter calls Musk's reasoning “a story, imagined in an effort to escape a merger agreement that Musk no longer found attractive once the stock market—and along with it, his massive personal wealth—declined in value.” (AP Photo/Gregory Bull, File)
tech

Musk countersuit accuses Twitter of fraud over 'bot' count

6 Comments

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

The countersuit by the billionaire and Tesla CEO alleges that Twitter committed fraud, breach of contract and violation of a securities law in Texas, where Musk lives.

Musk's counterclaims were filed confidentially last week and unsealed in a filing late Thursday at the Delaware Chancery Court.

Musk offered to buy Twitter earlier this year, then tried to back out of the deal by claiming the social platform was infested with a 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 argue in the countersuit that Twitter “misrepresentations or omissions” distorted the company’s value and caused Musk to agree in April to buy it at an inflated price. They said 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 filing also said most of Twitter's ads are shown only to a sliver of the company's user base.

Musk's team also accused Twitter of making too many major changes in recent months without consulting Musk, including personnel decisions and allegedly disobeying social media restrictions imposed by the government of India, which is Twitter's third largest market. Musk had pledged to make Twitter a haven for free speech but has also said it must comply with the local laws where it operates.

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 company, in particular, took issue with Musk's estimate of fake accounts, saying the analysis relied on a “generic web tool" that designated Musk's own Twitter account as a likely bot.

“The result is a distortion that Musk is hoping will nonetheless make waves,” Twitter's response said.

The case is scheduled to go to trial on October 17. The Delaware court handles many high-profile disputes between businesses, such as Twitter, that are incorporated there.

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6 Comments
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MuskRat needs to shut his yapper. He's just greedy and wants to control information, or rather misinformation. He's a successor to the sleazebag Rupert Murdock the Crock.

0 ( +0 / -0 )

Whatever happens Musk will come out on top.He’s got the bigger brain and the bigger wallet (and more children).

0 ( +1 / -1 )

The TWTR board need to fire Agrawal asap, he is causing damage to a great company.

There is another dispute currently, ie how much can redaction is done to the countersuit document by Musk. Seriously? TWTR wants people to believe them, but at the same time trying to get more time to hide info?

https://www.reuters.com/technology/elon-musks-twitter-countersuit-due-by-friday-acrimony-grows-2022-08-03/

For TWTR shareholder's sake, just give Musk all the info he needs to complete the deal, even if it meant a renegotiated price.

0 ( +1 / -1 )

Twitter and Youtube - two places where you have to be careful if you don't follow the western MSM or governments' narratives.

1 ( +2 / -1 )

Quote 'Post scarcity AI future'.

LOL. Nice fantasy. We are all stuffed. It's just a matter of time.

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The Delaware court handles many high-profile disputes between businesses, such as Twitter, that are incorporated there.

And why they are incorporated there is one of the central stories of late stage predatory capitalism like the Panama and Pandora papers.

https://press.princeton.edu/books/hardcover/9780691180007/whats-the-matter-with-delaware

Musk's inspiration Iain Banks wrote of a post scarcity AI future. Such vulture capitalism is one reason why it will take longer to get there.

3 ( +4 / -1 )

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