Musk countersuit accuses Twitter of fraud

by | Aug 5, 2022 | World

The Tesla CEO is seeking to free himself from the $44bn Twitter buyout agreement, which he has tried to cancel.Elon Musk accused Twitter of fraud in a countersuit over his aborted $44bn 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 number 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’s “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 …

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