Reuters. In this illustration made on April 28, 2022, Elon Musk’s Twitter profile can be seen on a smartphone resting on printed Twitter logos. Photographed by Noeleen Walder and Tom Hals for Reuters using a Dado Ruvic illustration.
Reuters: NEW YORK
Elon Musk’s accusations that he was duped into signing the agreement to purchase the social media business were rejected by Twitter Inc. on Thursday, claiming they were “implausible and contrary to fact.”
The allegations were made by Musk in a countersuit that was filed last Friday and was made public on Thursday.
“Musk claims that Twitter (NYSE: TWTR), the billionaire founder of several firms who had been persuaded by Wall Street bankers and attorneys, tricked him into signing a $44 billion merger agreement. That tale is as unbelievable and untrue as it seems, “Twitter stated in a document it made public on Thursday.
The next shot in what is shaping up to be a bitter court battle between the world’s richest person and the social media behemoth is Twitter’s filing.
On October 17, the two sides will go on trial after Musk sought to renegotiate his agreement to buy Twitter due to what he claims is a misrepresentation of false accounts on the platform.
The San Francisco-based business is attempting to pressure Musk into carrying out the agreement and accuses him of destroying it because it no longer benefited him.
An inquiry for comment was not immediately answered by a Musk official.
Musk charges Twitter of increasing up efforts to hide the true number of its users as the market fell, in the counterclaims that were made public on Thursday.
The counterclaims assert that Twitter was swimming nude when it provided the Musk Parties with the information they requested since the long bull market was ending and the tide was turning.
According to Twitter, Musk has not “pleaded a shred of evidence” in support of these “fact-free” claims.
Additionally, Musk asserts that Twitter’s “misrepresentations about its spam or fraudulent accounts go far beyond simply providing wrong figures.”
According to Musk, while Twitter claims to have 238 million “monetizable daily active users,” the number of people who actually view advertisements is about 65 million lower.
According to Twitter, the information it provided to the SEC concerning its monetizable daily active users was accurate.
Musk, the CEO of electric vehicle manufacturer Tesla (NASDAQ: TSLA) Inc., made an offer to purchase Twitter for $54.20 per share in April, claiming he believed in the site’s potential as a worldwide free expression platform.
But when Twitter’s stock price lagged his acquisition offer, he lost interest in the company and started to doubt the claim that bot and spam accounts accounted for less than 5% of users.
On July 8, Musk attempted to leave Twitter without paying a $1 billion breakup fee, claiming that Twitter had withheld information about bot and spam accounts. He was sued by Twitter four days later.
Musk served subpoenas to Twitter’s advisers at Goldman Sachs (NYSE: GS) and JP Morgan over their work earlier this week, and Twitter responded by serving dozens of banks, investors, and law firms with similar documents.
According to legal experts, Twitter’s demands indicated that the firm wanted to know why Musk turned against it or whether he breached his duty to get adequate finance.