Twitter-Musk Takeover Dispute Heading For An October Trial
Twitter is trying to force the billionaire to make good on his April promise to buy the social media giant for $44 billion.LEARN MORE
The lawsuit filed by the Tesla and SpaceX CEO alleges Twitter committed fraud and breach of contract, according to The Washington Post.
Elon Musk accused Twitter of fraud in a countersuit over his aborted $44 billion deal for the social media company, which he said held back necessary information and misled his team about its true user 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 contract and violation of the Texas Securities Act.
Musk's counterclaims were filed confidentially last week and unsealed in a filing late Thursday at the Delaware Chancery Court, the Wall Street Journal reported.
Musk had offered to buy the company earlier this year, then tried to back out of the deal by claiming the social platform was infested with much larger numbers 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 argued that 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 Post and the Journal reported.
The filing also said most of Twitter's ads are shown only to a sliver of the company's user base, the Post said.
In an unexpected twist, Twitter filed its response denying Musk's accusations before Musk’s own counterclaims surfaced.
Twitter called Musk’s reasoning “a story, imagined in an effort to escape a merger agreement that Musk no longer found attractive.”
The case is scheduled to go to trial on October 17.
Additional reporting by The Associated Press.
The trial hinges on the question of whether a pair of tweets that Musk posted damaged Tesla shareholders.By Vicki Behringer / AP
The tweets resulted in a $40 million settlement with securities regulators and a class-action lawsuit alleging he misled investors.By Vicki Behringer via AP
The case is based on Musk's 2018 tweets about possibly taking Tesla private — prompting a $14B swing in stock fortune over a 10-day period.By Susan Walsh / AP
Former Israeli Prime Minister Naftali Bennett became one of the few Western leaders to meet President Vladimir Putin during the war.By Tsafrir Abayov / AP
Survivors said the boat’s engine room had quickly filled with water before the 24-ton vessel tipped over.By Jung Hee-sung / Yonhap via AP
The new sanctions create uncertainty about prices as the European Union finds new supplies of diesel from the U.S., Middle East and India.By Michael Probst / AP