BRENDAN SMIALOWSKI / AFP
Elon Musk, seen here during Satellite 2020 in Washington, April 11, 2022.
TWITTER — Twitter filed its response to Elon Musk’s lawsuit in court on Thursday, August 4, giving a clearer idea of the multi-billionaire’s arguments as he seeks to exit the social network’s takeover agreement and blames him “sprinkle dust in your eyes”.
That’s what the heads of Tesla and SpaceX claim “are factually incorrect, legally insufficient and economically irrelevant. We look forward to the process.”Bret Taylor, the platform’s CEO, tweeted on Thursday.
In mid-July, Twitter sued Elon Musk in the Delaware Court of Chancery, a court specializing in commercial law, to force him to redeem his $44 billion acquisition commitment. The trial is scheduled to begin on October 17.
But this Friday, the richest man in the world countered with a complaint “confidential”.
“According to Musk – the billionaire who founded several companies and is advised by Wall Street bankers and lawyers – Twitter threw smoke and mirrors at him to get him to sign the acquisition agreement.”indicates the social network.
“It’s an attempt to escape a contract that Musk no longer finds appealing since the stock market fell.”claim his lawyers.
“Numerous material misstatements and omissions”
Elon Musk took to Twitter in April and then signed a deal for $54.20 per share. He unilaterally ended it in early July on the grounds that the San Francisco-based company allegedly lied about the proportion of automated and spam accounts on its platform.
According to the document filed by Twitter on Thursday, the Tesla boss accuses the board of concealing the true share of inauthentic accounts, which he says is around 10% of daily active users and exposed to advertising. Twitter estimates it’s less than 5%.
The platform submitted the official documents to the American stock exchange police officer “contain numerous material misstatements and omissions that distort the value of Twitter and have led Elon Musk to agree to purchase the company at an inflated price”assure the lawyers of the entrepreneur.
Twitter’s strategy, they continue, was ” Play hide and seek “ prevent the buyer from doing so “to know the truth”.
Twitter replies that the businessman rushed the negotiations and that the deal never mentioned the fake accounts.
Between the general decline in the stock market in recent months, falling advertising revenue on social media (due to economic conditions) and public criticism from Elon Musk, Twitter’s stock had plummeted to around $32 on July 11. It was worth around $41 on Thursday.
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