Alleging the social media platform misled him about key aspects of its business before he agreed to a $44 billion buyout, Elon Musk has accused Twitter of fraud.
While Twitter is seeking to force him to close the deal, Musk has argued the number of users who can be shown advertising on the platform is far below the firm’s figures.
“Twitter’s disclosures have slowly unraveled, with Twitter frantically closing the gates on information in a desperate bid to prevent the Musk Parties from uncovering its fraud,” the filing stated.
Accusing Twitter of committing fraud and breaching its contract along with violation of a securities law in Texas, Musk’s counterclaims were filed confidentially last week.
Rejecting the mercurial billionaire’s argument, Twitter said “The counterclaims are a made-for-litigation tale that is contradicted by the evidence and common sense.”
Justifying his termination of the deal, Musk said it was because the firm had misled him regarding its tally of fake and spam accounts.
Sticking to its estimates that less than five percent of the activity on the platform, Twitter slammed Musk for his false claim that the false account figure topping 10 per cent is “untenable.”
Saying the analysis relied on a “generic web tool” that designated Musk’s own Twitter account as a likely bot, Twitter took issue with Musk’s estimate of fake accounts.
Before the case’s high-profile trial on October 17, Twitter had set a vote on the merger for September 13 and requested shareholders to endorse the deal.
(With inputs from agencies)
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