Sued for withdrawing takeover bid, Elon Musk officially accuses Twitter of fraud

His complaint describes “distorted representations” of the social network as “sins”. Himself sued by Twitter for his failed buyout offer, Elon Musk filed Thursday evening in a Delaware state business court the 165 pages of arguments in his own complaint against the blue bird. He accuses Twitter of having defrauded on the number of monetizable accounts of the social network.

The billionaire’s lawyers accuse the company of having “hidden the truth” about the number of 238 million claimed monetizable daily users. According to them, they are about 65 million less and “the majority of advertisements” would only be broadcast “to less than 16 million users, a fraction” of what Twitter claims.

Game of “hide and seek”

The complaint finally claims that “Twitter frantically blocked the information from circulating in a desperate attempt to prevent (Elon Musk) from discovering the fraud”, evoking a game of “hide and seek” to prevent the buyer as long as possible. to “discern the truth”.

Twitter responds that the businessman rushed the negotiations and that the agreement never mentioned the fake accounts, and the lawyers of the social network denounce an “attempt to escape from a contract that Musk no longer finds interesting since the stock market has gone down.

Four months of twists and turns

This complaint is yet another twist in the affair between Twitter and the boss of Tesla since the latter had taken it into his head to buy it last April. After signing a buyout deal for $54.20 per share, Musk unilaterally called off the deal, claiming the San Francisco-based company allegedly lied about the proportion of automated and spam accounts on its platform. .

In mid-July, Twitter sued Elon Musk in the Delaware Court of Chancery, a court specializing in business law, to force him to honor his acquisition commitment for $ 44 billion. A trial which should open on October 17. Two weeks later, the richest man in the world had counter-attacked with a “confidential” complaint.

The clash does not leave Twitter unscathed. Between the general decline in the stock market in recent months, the decline in social media advertising revenue linked to the economic situation and public criticism of Elon Musk, its stock collapsed to around $32 on July 11. It was worth $41.97 on Friday, up 2.20%.

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