A standoff erupts between the richest man in the world and Twitter. The multi-billionaire Tesla boss Elon Musk accuses the social network ” fraud “ in the lawsuit over the $44 billion deal he signed to take over the company but is now trying to break.
Elon Musk accuses Twitter in an argument filed Thursday, August 4, in a Delaware state business court “The Truth Masked” about the figure of 238 million monetizable daily users that the social network claims, according to this 165-page legal document consulted by Agence France-Presse on Friday.
According to the billionaire’s lawyers, there are around 65 million less and more “the majority of ads” would only be broadcast“with less than 16 million users a fraction” what Twitter claims. The complaint that qualifies “misrepresentations” of the social network of “sins”confirm that “Twitter desperately blocked the spread of information in a desperate attempt to stop it [Elon Musk] to uncover the fraud.
Elon Musk took to Twitter in April and then signed a buyout 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.
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. Two weeks later, the richest man in the world responded with a complaint “confidential”. The trial is scheduled to begin on October 17.
“Falsifying the Value of Twitter”
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 entrepreneur’s lawyers in their argument. 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 agreement never mentioned the fake accounts, and the social network’s lawyers denounced one “Trying to get out of a deal Musk hasn’t found attractive since the stock market crashed”.
Twitter’s stock plummeted to around $32 on July 11 between the general stock market decline in recent months, the decline in social media advertising revenue related to the economy, and public criticism from Elon Musk.