August 12, 2022
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Twitter rejects Musk's claims that he was hoodwinked

Twitter rejects Musk’s claims that he was hoodwinked

Twitter Inc. on Thursday dismissed Elon Musk’s claims in a Delaware courtroom submitting that he was hoodwinked into signing the deal to purchase the social media firm, saying that it was “implausible and contrary to fact.”

Mr. Musk made the claims in a countersuit filed below seal final Friday, which was made public on Thursday.

“According to Musk, he — the billionaire founder of multiple companies, advised by Wall Street bankers and lawyers — was hoodwinked by Twitter into signing a $44 billion merger agreement. That story is as implausible and contrary to fact as it sounds,” the submitting launched by Twitter on Thursday mentioned.

Twitter‘s filing is the latest salvo in what is building up to be an increasingly acrimonious legal showdown between the world’s richest individual and the social media large.

The two sides headvert to trial on Oct. 17 after Mr. Musk sought to desert his deal to accumulate Twitter over what he says is a misrepresentation of pretend accounts on the website.

The San Francisco-based firm is attempting to power Mr. Musk to observe via on the deal and accuses him of sabotaging it as a result of it now not served his pursuits.

A consultant for Mr. Musk didn’t instantly reply to a request for remark.

In the counterclaims made public Thursday, Mr. Musk accuses Twitter of stepping up efforts to hide the true variety of its customers, as the market plummeted.

“As a long bull market was coming to a close, and the tide was going out, Twitter knew that providing the Musk Parties the information they were requesting would reveal that Twitter had been swimming naked,” the counterclaims say.

Twitter counters that Mr. Musk has not “pleaded a shred of evidence” for these “fact-free” allegations.

 

‘FACT-FREE’ ALLEGATIONS

Mr. Musk additionally claims that “Twitter’s misrepresentations run far deeper than simply providing incorrect numbers” about its spam or false accounts.

Whereas “Twitter touts having 238 million ‘monetizable daily active users,’ those users who actually see ads” is roughly 65 million decrease, Mr. Musk says in the counterclaims.

Twitter maintains that its SEC disclosures about monetizable every day lively customers have been correct.

Mr. Musk, the chief government of electrical automobile firm Tesla Inc., provided to purchase Twitter for $54.20 per share in April, saying he believed in its potential as a world platform without cost speech.

However he soured on Twitter as its inventory value lagged his takeover bid, and commenced expressing skepticism that bot and spam accounts represented lower than 5% of customers.

Mr. Musk sought to again out on July 8 with out paying a $1 billion breakup price, citing Twitter‘s failure to offer particulars on bot and spam accounts. Twitter sued him 4 days later.

Earlier this week, Twitter issued dozens of subpoenas to banks, traders and legislation corporations that backed Mr. Musk’s takeover bid, whereas Musk issued subpoenas to Twitter‘s advisers at Goldman Sachs and JP Morgan over their work. Read full story

Authorized consultants have mentioned Twitter‘s requests recommended the firm needed to know why Mr. Musk turned towards it, or whether he reneged on his obligation to acquire enough financing. – Reuters

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