Elon Musk’s countersuit accuses Twitter of fraud over $44B deal

2 months ago 36
CEO Elon Musk Elon Musk's countersuit alleges that Twitter committed fraud, breach of declaration and usurpation of the Texas Securities Act. AP

Elon Musk accused Twitter of fraud successful a countersuit implicit his aborted $44 cardinal deal for the societal media company, which helium said held backmost indispensable accusation and misled his squad astir its existent idiosyncratic base, according to media reports.

According to The Washington Post, the countersuit filed by the billionaire and Tesla CEO filed Thursday alleges that Twitter committed fraud, breach of declaration and usurpation of the Texas Securities Act.

Musk’s counterclaims were filed confidentially past week and unsealed successful a filing precocious Thursday astatine the Delaware Chancery Court, the Wall Street Journal reported.

Musk had offered to buy the institution earlier this year, past tried to backmost retired of the woody by claiming the societal level was infested with overmuch larger numbers of “spam bots” and fake accounts than Twitter had disclosed.

Twitter sued to unit him to implicit the acquisition. Musk responded by filing his countersuit.

Musk’s attorneys argued that Twitter’s ain disclosures revealed that it has 65 cardinal less “monetizable regular progressive users,” who tin beryllium shown integer ads, than the 238 cardinal that Twitter claims, the Post and the Journal reported.

The filing besides said astir of Twitter’s ads are shown lone to a sliver of the company’s idiosyncratic base, the Post said.

In an unexpected twist, Twitter filed its effect denying Musk’s accusations earlier Musk’s ain counterclaims surfaced.

Twitter called Musk’s reasoning “a story, imagined successful an effort to flight a merger statement that Musk nary longer recovered attractive.”

The lawsuit is scheduled to spell to proceedings connected October 17.